US: Small business confidence picks up slightly

In November, US NFIB small business confidence picked up slightly, reversing part of the previous month’s plunge. NFIB small business confidence rose from 91.6 to 92.5 in November, marginally less than the consensus estimate (92.6).
The breakdown shows an increase in the percentage of firms reporting: plans to hire (9% from 5%), good time to expand (9% from 6%), positions not able to fill (23% from 21%), increased capital spending (24% from 23%), plans to increase inventory (0% from -1%), expect higher sales (3% from 2%), inventory satisfaction (-4% from -5%) and easing of credit conditions (-7% from -8%). There was however a further drop in the number of firms reporting: expect better economy (-20% from -17%), positive earnings trend (-24% from -23%) and higher selling prices (2% from 5%). After a sharp weakening in sentiment in October, due to the political crisis and government shutdown, small business sentiment improved only modestly in November. The positive news was mainly based in the employment data, although smaller firms remain pessimistic on the economic outlook and their earnings trend.

EMU: Other: UK industrial production held up in October

In October, UK industrial production rose for a second straight month, in line with expectations. Industrial production rose by 0.4% M/M due to strength in the manufacturing sector (0.4% M/M). Production of oil & gas (-2.5% M/M) and mining & quarrying (-1.1% M/M) on the contrary weakened in October. Within the manufacturing sector, production of investment- (2.0% M/M), intermediate- (0.5% M/M) and durable (0.3% M/M) goods rose, while production of non-durable consumer goods fell by 1.4% M/M. After a strong rebound in the services sector, also the UK manufacturing sector is now picking up, which suggests that the UK economic recovery is broadening. Recent data however suggest that demand from abroad remains poor, which might weigh on the recovery going forward.