US The key economic data for the US was the December retail sales figure that showed a rise in consumer spending driven largely by autos and gasoline. While broadly in line with expectations, sales ex-autos and gasoline were virtually unchanged from the previous month. Overall, the data is consistent with the narrative that tightening labor [...]
US US Fed policy makers agreed to raise the target range for Fed funds rate to 0.50% – 0.75% in their last meeting “in light of considerable progress that had been made toward the Committee’s objective of maximum employment and that inflation would rise to 2.00% in the medium term.” The minutes suggested that “upside [...]
US The big news was the second rate hike out of the FOMC since 2006. FOMC committee members signaled that more rate hikes may be needed in 2017, which sent interest rates higher across the yield curve. A closer look at the “dot plot” showed six FOMC members look for three rate hikes next year, [...]
US The US ISM non-manufacturing posted its highest reading this year of 57.2 in November. The measure of services business activity has been up and down throughout 2016, but has found an upward trend toward the second half of the year. The details of the recent survey were more encouraging, with the employment component jumping [...]
US OPEC’s decision to cut output by 1.2m bpd to 32.5m bpd took center stage, shoring up global crude oil prices by 12% on optimism over easing oversupply. Brent and US WTI prices last traded at US$54 and US51/ barrel respectively. This breakthrough on output cut is the first for OPEC since 2008 and the [...]
US All the major equity market indices hit record highs at various points this week, including a Dow-S&P 500-Nasdaq-Russell 2000 flush on Monday, reflecting post-election prospects for stronger economic growth and higher corporate profits owing to the potential policy trifecta of tax cuts, more infrastructure spending and less regulation. Data on housing was more mixed, [...]
US On the household front, retail sales started Q4 with a bang, rising 0.8% on top of an upwardly revised September reading. Strong auto and gasoline station sales provided a lift to the headline, but even excluding these components retail sales rose a solid 0.6% in October and 4.3% over the past year. The consumer [...]
US The economic data calendar was light last week as the presidential election took centre stage. The NFIB relayed a generally optimistic tone from small businesses in October, as the measure increased to its highest point in 2016. The Job Openings and Labor Turnover Survey (JOLTS) report reiterated that the labor market was steady in [...]
US The US economy expanded 2.9% quarter-on-quarter annualised pace in Q3, its fastest pace in two years followed a 1.4% growth in Q2. US consumer spending advanced 0.5% month-on-month in September (August: -0.1% M-o-M), in tandem with quicker increase in income (+0.3% M-o-M vs. +0.2% M-o-M). On the services sector landscape, reports form ISM and [...]
US US GDP growth bounced back in the third quarter after disappointing readings in the first two quarters of the year. Annualised growth climbed 2.9% with consumer spending and net exports leading the way in terms of contributions to headline growth. Equipment and residential investment subtracted from growth in the quarter as nonresidential investment bounced [...]
