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The key points from today’s economic news, brought to you by Guardian Stockbrokers.
Bank of England held interest rate steady at 0.50%, stuck to its outlook for modest tightening
The Bank of England’s (BoE) Monetary Policy Committee (MPC) unanimously agreed to keep its benchmark interest rate unchanged at 0.50% and its asset purchase facility at £435.00 billion, as widely expected. In minutes of its December meeting, the central bank indicated that growth in the fourth quarter of this year “might be slightly softer” than in the third, while judging that inflation is likely to be close to its peak and will decline towards the 2.00% target in the medium term. The central bank also held the view that “further modest increases” in interest rates would be warranted over the next few years to help bring inflation to its target of 2.00%. On Brexit negotiations, the central bank stated that the latest developments reduce the chance of a disorderly exit from the EU.
UK retail sales advanced more than expected in November
On an annual basis, in November, retail sales advanced 1.60% in the UK, more than market expectations for a rise of 0.30%. In the prior month, retail sales had recorded a revised flat reading.
UK retail sales rose more than expected in November
Retail sales recorded a rise of 1.10% on a MoM basis in November, in the UK, more than market expectations for an advance of 0.40%. In the previous month, retail sales had recorded a revised rise of 0.50%.
UK retail sales ex-fuel rose more than expected in November
In November, retail sales ex-fuel rose 1.20% on a MoM basis in the UK, compared to a revised advance of 0.40% in the prior month. Market expectation was for retail sales ex-fuel to rise 0.40%.
ECB kept interest rates at record low, raised the Euro-zone’s growth forecasts
The European Central Bank (ECB), at its December monetary policy meeting, maintained the key interest rate unchanged at 0.00% and signalled that it would keep its aggressive monetary stimulus in place despite strong economic recovery in the Euro-bloc, in order to “sustain inflation” towards the ECB’s target. Further, the central bank boosted the Euro-zone’s growth forecast to 2.40% for 2017, up 0.20% and to 2.30% for 2018, from 1.80% predicted earlier. Inflation is expected to rise 1.40% next year, revised up from 1.20% estimated in September.
Euro-zone manufacturing PMI unexpectedly rose in December
In the Euro-zone, the flash manufacturing PMI registered an unexpected rise to 60.60 in December, compared to a level of 60.10 in the prior month. Market expectation was for the manufacturing PMI to ease to a level of 59.70.
Euro-zone composite PMI unexpectedly climbed in December
The flash composite PMI advanced unexpectedly to 58.00 in December, in the Euro-zone, compared to market expectations of a drop to 57.20. In the previous month, composite PMI had registered a reading of 57.50.
Euro-zone new car registrations in EU 28 countries rose in November
On a YoY basis, new car registrations in the EU 28 countries climbed 5.90% in November, in the Euro-zone. New car registrations in the EU 28 countries had registered a similar rise in the previous month.
Euro-zone services PMI unexpectedly rose in December
The preliminary services PMI rose unexpectedly to a level of 56.50 in the Euro-zone, in December, compared to market expectations of a drop to 56.00. In the previous month, services PMI had recorded a reading of 56.20.
German Markit composite PMI unexpectedly advanced in December
The flash Markit composite PMI in Germany registered an unexpected rise to a level of 58.70 in December, compared to market expectations of a fall to a level of 57.20. Markit composite PMI had recorded a reading of 57.30 in the prior month.
German services PMI advanced in December
In Germany, the preliminary services PMI rose to a level of 55.80 in December, compared to a reading of 54.30 in the prior month. Market expectation was for services PMI to climb to a level of 54.60.
German manufacturing PMI unexpectedly climbed in December
The preliminary manufacturing PMI registered an unexpected rise to a level of 63.30 in Germany, in December, compared to market expectations of a fall to a level of 62.00. In the prior month, manufacturing PMI had registered a level of 62.50.
French Markit composite PMI fell in December
The flash Markit composite PMI eased to 60.00 in December, in France, compared to a reading of 60.30 in the previous month. Markets were anticipating Markit composite PMI to drop to 59.60.
French EU normalised CPI advanced as expected in November
In France, the final EU normalised consumer price index (CPI) recorded a rise of 0.10% on a monthly basis in November, at par with market expectations. In the previous month, EU normalised CPI had registered a similar rise. The preliminary figures had also recorded an advance of 0.10%.
French services PMI dropped in December
The flash services PMI eased to 59.40 in December, in France, compared to a reading of 60.40 in the prior month. Markets were anticipating services PMI to ease to 60.00.
French manufacturing PMI unexpectedly rose in December
The preliminary manufacturing PMI recorded an unexpected rise to a level of 59.30 in France, in December, compared to market expectations of a drop to a level of 57.20. Manufacturing PMI had registered a level of 57.70 in the prior month.
French CPI (ex-tobacco) advanced as expected in November
In November, on a YoY basis, the final CPI (ex-tobacco) registered a rise of 1.20% in France, in line with market expectations. The preliminary figures had also recorded a rise of 1.20%. In the prior month, the CPI (ex-tobacco) had climbed 1.10%.
French CPI (ex-tobacco) advanced as expected in November
The final CPI (ex-tobacco) climbed 0.10% on a monthly basis in France, in November, at par with market expectations. In the prior month, the CPI (ex-tobacco) had registered a similar rise. The preliminary figures had also indicated an advance of 0.10%.
Italian EU normalised CPI declined as expected in November
On a monthly basis in Italy, the final EU normalised CPI fell 0.20% in November, at par with market expectations. The EU normalised CPI had recorded a flat reading in the prior month. The preliminary figures had also recorded a fall of 0.20%.
Italian EU normalised CPI advanced as expected in November
In November, the final EU normalised CPI in Italy, recorded a rise of 1.10% on an annual basis, in line with market expectations. The preliminary figures had also indicated an advance of 1.10%. In the prior month, the EU normalised CPI had registered a similar rise.
Italian CPI fell as expected in November
The final CPI slid 0.20% in Italy on a MoM basis in November, compared to a similar fall in the previous month. Markets were expecting the CPI to ease 0.20%. The preliminary figures had also recorded a drop of 0.20%.
Italian CPI rose as expected in November
In November, on an annual basis, the final CPI in Italy climbed 0.90%, in line with market expectations. In the prior month, the CPI had risen 1.00%. The preliminary figures had also recorded a rise of 0.90%.
Spanish HICP rose more than expected in November
On an annual basis, the final harmonised consumer price (HICP) index in Spain, rose 1.80% in November, more than market expectations for a rise of 1.70%. In the previous month, the HICP had risen 1.70%. The preliminary figures had recorded an advance of 1.70%.
Spanish CPI rose more than expected in November
On an annual basis, in November, the final CPI rose 1.70% in Spain, higher than market expectations for an advance of 1.60%. The CPI had advanced 1.60% in the prior month. The preliminary figures had indicated an advance of 1.60%.
Spanish HICP index rose as expected in November
The final HICP index recorded a rise of 0.30% in Spain on a MoM basis in November, at par with market expectations. The preliminary figures had also indicated an advance of 0.30%. In the prior month, the HICP index had registered a rise of 0.60%.
Spanish CPI advanced more than expected in November
On a monthly basis, the final CPI advanced 0.50% in Spain, in November, higher than market expectations for a rise of 0.40%. In the previous month, the CPI had recorded a rise of 0.90%. The preliminary figures had indicated a rise of 0.40%.
SNB left interest rate on hold at -0.75%, lifted its inflation forecast
The Swiss National Bank (SNB) retained the benchmark interest rate at -0.75% and projected that inflation in Switzerland would exceed its target in three years. However, the central bank reiterated its commitment to “intervene in the foreign exchange market as necessary”. The central bank upgraded its inflation forecast to 0.50% for 2017, up from 0.40% predicted earlier and to 0.70% for next year, from 0.40%. The central bank also predicted the Swiss economy to expand around 2.00% in 2018, after advancing by 1.00% in 2017.
Swiss producer and import price index advanced in November
In November, on a YoY basis, the producer and import price index climbed 1.80% in Switzerland. In the previous month, the producer and import price index had advanced 1.20%.
Swiss producer and import price index rose in November
The producer and import price index rose 0.60% on a MoM basis, in November, in Switzerland. In the prior month, the producer and import price index had registered a rise of 0.50%.
US import price index advanced as expected in November
In November, on a MoM basis, the import price index in the US recorded a rise of 0.70%, compared to a revised advance of 0.10% in the prior month. Market anticipation was for the import price index to rise 0.70%.
US initial jobless claims unexpectedly fell in the last week
In the week ended 09 December 2017, the seasonally adjusted initial jobless claims in the US recorded an unexpected drop to 225.00 K, compared to market expectations of a steady reading. In the previous week, initial jobless claims had registered a reading of 236.00 K.
US continuing jobless claims dropped in the last week
The seasonally adjusted continuing jobless claims registered a drop to 1886.00 K in the US, in the week ended 02 December 2017, compared to a revised reading of 1913.00 K in the previous week. Markets were anticipating continuing jobless claims to fall to 1900.00 K.
US retail sales (ex-auto & gas) rose more than expected in November
In November, retail sales (ex-auto & gas) advanced 0.80% on a MoM basis in the US, more than market expectations for a rise of 0.40%. In the previous month, retail sales (ex-auto & gas) had climbed by a revised 0.40%.
US import price index rose less than expected in November
On an annual basis, the import price index in the US advanced 3.10% in November, lower than market expectations for an advance of 3.20%. In the prior month, the import price index had risen by a revised 2.30%.
US business inventories fell as expected in October
Business inventories in the US recorded a drop of 0.10% on a monthly basis in October, meeting market expectations. In the previous month, business inventories had registered an unchanged reading.
US Markit services PMI unexpectedly dropped in December
Compared to a level of 54.50 in the prior month the flash Markit services PMI recorded an unexpected drop to 52.40 in the US, in December. Market anticipation was for Markit services PMI to climb to a level of 54.70.
US Markit composite PMI declined in December
In December, the preliminary Markit composite PMI dropped to 53.00 in the US. In the previous month, Markit composite PMI had recorded a level of 54.50.
US Markit manufacturing PMI surprisingly rose in December
The preliminary Markit manufacturing PMI in the US advanced unexpectedly to a level of 55.00 in December, compared to a reading of 53.90 in the previous month. Market anticipation was for the Markit manufacturing PMI to remain unchanged.
US advance retail sales advanced more than expected in November
On a MoM basis, advance retail sales recorded a rise of 0.80% in the US, in November, more than market expectations for an advance of 0.30%. In the previous month, advance retail sales had recorded a revised rise of 0.50%.
US export price index rose more than expected in November
In November, the export price index climbed 0.50% on a monthly basis in the US, compared to a revised rise of 0.10% in the previous month. Markets were anticipating the export price index to advance 0.30%.
US retail sales Control Group rose more than expected in November
In November, on a monthly basis, retail sales Control Group in the US recorded a rise of 0.80%, more than market expectations for an advance of 0.40%. Retail sales Control Group had recorded a revised rise of 0.40% in the prior month.
US retail sales ex-autos rose more than expected in November
On a monthly basis, in the US, retail sales ex-autos recorded a rise of 1.00% in November, compared to a revised rise of 0.40% in the prior month. Market anticipation was for retail sales ex-autos to advance 0.60%.
US export price index rose in November
The export price index in the US registered a rise of 3.10% on an annual basis, in November. In the previous month, the export price index had risen 2.70%.
Canadian new housing price index advanced in October
On an annual basis, the new housing price index registered a rise of 3.50% in October, in Canada. The new housing price index had recorded a rise of 3.80% in the previous month.
Canadian new housing price index advanced less than expected in October
The new housing price index climbed 0.10% in Canada, on a monthly basis in October, less than market expectations for an advance of 0.20%. In the prior month, the new housing price index had registered a rise of 0.20%.
Japanese Tankan non-manufacturing outlook index remained steady in 4Q 2017
In 4Q 2017, the Tankan non-manufacturing outlook index remained flat at a level of 19.00 in Japan, compared to market expectations of an advance to 22.00.
Japanese industrial production rose in October
On a YoY basis, the final industrial production in Japan registered a rise of 5.90% in October. In the prior month, industrial production had risen 2.60%. The preliminary figures had also recorded an advance of 5.90%.
Japanese Tankan large manufacturing outlook index remained unchanged in 4Q 2017
In Japan, the Tankan large manufacturing outlook index remained flat at a level of 19.00 in 4Q 2017. Markets were anticipating the Tankan large manufacturing outlook index to climb to 22.00.
Japanese Tankan non-manufacturing index remained flat in 4Q 2017
The Tankan non-manufacturing index remained unchanged at 23.00 in Japan, in 4Q 2017. Markets were anticipating the Tankan non-manufacturing index to climb to 24.00.
Japanese capacity utilisation rose in October
Capacity utilisation rose 0.20% on a MoM basis, in October, in Japan. Capacity utilisation had recorded a drop of 1.50% in the prior month.
Japanese Tankan large all industry capex advanced less than expected in 4Q 2017
Tankan large all industry capex advanced 7.40% in Japan on a QoQ basis in 4Q 2017, lower than market expectations for an advance of 7.50%. In the previous quarter, Tankan large all industry capex had risen 7.70%.
Japanese industrial production climbed in October
In October, on a monthly basis, the final industrial production climbed 0.50% in Japan. Industrial production had registered a drop of 1.00% in the prior month. The preliminary figures had also indicated an advance of 0.50%.
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