Key Economic Indicators Mixed in June

Wells Fargo Research Team Wells Fargo

U.S. Review

Key Economic Indicators Mixed in June

All eyes were on Chair Janet Yellen this week as she gave testimony at the Semiannual Monetary Policy meeting to Congress. She reiterated components of the economy where the Fed is less certain about the path of growth, namely inflation.
Retail sales and consumer prices came in below expectations in June, while industrial production posted a stronger than expected reading. Although retail sales were weaker than expected, the year-over-year rate still suggests the expansion in consumer spending has room to grow. Year-over-year core consumer prices were unchanged at 1.7 percent in June.

Global Review

Global Economy Shows Further Signs of Improvement

Eurozone industrial production was higher than the consensus estimate with an increase of 1.3 percent increase in May after an increase of 0.3 percent in the previous month.
The central bank of Canada this week decided to increase its overnight interest rate by 25 basis points. The bank justified its move by recognizing the improvement in the global economic landscape as well as an improving Canadian economy.
In Mexico, industrial production was up 0.1 percent in May, month on month, and by 1.0 percent on a year-earlier basis thanks to improvements in construction, public utilities and mining output while manufacturing output was down.

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