Premium
- New York
- London
- Barcelona
- Tokyo
- Sydney
Search
KBC News Picks
US: Eco data give no signs of clear improvement yet
Fri, May 16 2008, 09:52 GMT
by KBC Market Research Desk
The New York Empire State manufacturing survey showed a small decline in May from 0.63 to -3.33. The decline follows a steep rise in April from -22.23. Looking at the details, prices paid rose from 57.29 to 69.57 while prices received slowed from 20.83 to 15.22. New orders were little changed (from 0.06 to -0.46) and this was also the case for the number of employees (1.09 from 0.00). Shipments slowed from 17.49 to 4.55 and inventories declined from -4.17 to -6.52. Unfilled orders improved from -6.25 to -4.35. The general Business conditions index (six months from now) improved slightly from 19.57 to 23.88. The report was too close to expectations to move the markets.
The Philadelphia Fed survey on the manufacturing sector improved slightly from -24.9 to -15.2 and this outcome was also slightly better than expected. Nevertheless, the outcome still points to a contraction in manufacturing activity in the region. Price indicators (both prices paid and prices received) were slightly higher again and well in positive territory at 53.8 and 31.6 respectively. Orders improved from -18.8 to -3.7 and this was also the case for shipments orders (2.2 from -8.0) and the number of employees (-1.0 from -11.0). Unfilled orders declined from -16.8 to -19.1.
Initial jobless claims were little changed in the week to May 10 at 371K from 365K. The continuing claims rose from 3032K to 3060K, slightly more than expected. The data didn’t bring much new info on the labour market.
US industrial production declined a steeper than expected 0.7% in April compared to a downward revised rise of 0.2% in March. The decline was mostly due to the manufacturing sector (-0.8%) and mining (-0.8%). Utility production was slightly higher on a monthly basis. Within the manufacturing sector, the 8.2% decline in vehicle production did catch the eye.
EMU: Germany powers growth in Q1
In April, euro zone headline inflation slowed from 3.6% Y/Y in March to 3.3% Y/Y in line with the flash estimate. It was the first slowing in seven months time. Although the current elevated inflation levels will remain a concern at the ECB, the drop in the core inflation rate from 2% Y/Y to 1.6% Y/Y should provide some relief.
In Q1, the euro zone economy grew by 0.7% Q/Q and 2.2% Y/Y, which was stronger than the expected 0.5% Q/Q. The strong performance was mainly due to Germany, where the economy boomed by 1.5% Q/Q. No details were available yet, but the German statistical office stated that growth was driven by investments and that also consumption growth had contributed to the strong growth figure. In the coming quarters, growth is expected to slow and fall below trend, which is necessary to bring the inflation rate back in line with price stability.
Published on Fri, May 16 2008, 09:52 GMT
Archive
- US: Eco data give no signs of clear improvement yet
Published On Fri, May 16 2008, 09:52 GMT - US: Inflation slows in April
Published On Thu, May 15 2008, 08:02 GMT - US: Import prices and retail sales higher than expected
Published On Wed, May 14 2008, 08:15 GMT - EMU: Retail sales continue to disappoint
Published On Thu, May 8 2008, 07:41 GMT - EMU: PMI results confirmed
Published On Wed, May 7 2008, 07:33 GMT
KBC Bank
| Havenlaan 12, 1080 Brussels
http://www.kbc.be/dealingroom | piet.lammens@kbc.be
Legal disclaimer and risk disclosure
This non-exhaustive information is based on short-term forecasts for expected developments on the financial markets. KBC Bank cannot guarantee that these forecasts will materialize and cannot be held liable in any way for direct or consequential loss arising from any use of this document or its content. The document is not intended as personalized investment advice and does not constitute a recommendation to buy, sell or hold investments described herein. Although information has been obtained from and is based upon sources KBC believes to be reliable, KBC does not guarantee the accuracy of this information, which may be incomplete or condensed. All opinions and estimates constitute a KBC judgment as of the data of the report and are subject to change without notice.Interested in forex trading? forex brokerage firms!
Placing FXstreet.com as your referral agent on your FX trading account and generating rebates higher than the Premium fee, FXstreet.com will give you access to the premium subscription for free.
Become an FXstreet.com Premium Member for only 45 EUR a month or 450 EUR a year if you are private trader, 900 EUR a year if you are a corporate trader.
More info
Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management.
Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
©2008 "FXstreet.com. The Forex Market" All Rights Reserved.