New US data did not add positive

20 September, 2017

Published data on construction activity in the US in August slightly exceeded expectations. The number of building permits reached an annualized rate of 1.3M (an increase of 5.7% mom) above expected 1.22M. Housing starts fell by 0.8% during last month to 1.18M from 1.19M, slightly higher than the expected 1.175. Such statistics somewhat reduced fears of negative impact on the industry the beginning of the hurricane season, but did not deprive fears that the construction industry would pull down the US economy in the third quarter.

Besides these statistics there also were publications of current account and imports / exports price indexes. Current account again presented an unpleasant surprise as deficit widens to $123.1 billion in the second quarter from 113.5 billion in the first three months of this year. Expansion of the deficit was due to an increase in imports.

Import prices increased by 0.6% in August, and to the August of the previous year increase was 2.1%. Monthly growth was the highest since January, and the annual growth rate show the first acceleration after five months of recession.

The recovery of the US economy increases the demand for imports, and the weakening of the dollar makes it more expensive, which has a negative impact on the balance positions. At the moment, the news caused a slight impulse for the fall of the US currency in the range of 0.1-0.2%, but after initial move the markets returned to their former positions waiting for tomorrow’s Fed’s decision and monetary policy statement.


Source link  
Oil at $100: how will it affect economy?

Brent crude has risen about 33 percent this year and is close to the highest in six months. While higher prices due to strong demand typically reflects...

Oil sector will lose 95% by 2050

Companies in the oil and gas sector, including large groups such as Shell, BP and Exxon, could lose 95% of their value by 2050 if governments...

The US economy recession by 2021

In a recent survey, most business economists believe the U.S. will fall into recession by 2021. Days after the market euphoria over a ceasefire in the...


Fed plans some further hikes

The U.S. Federal Reserve raised interest rates on Wednesday, as expected, but forecast fewer rate hikes next year and signaled its tightening cycle is nearing...

Pound to remain in Limbo

The British pound hit its lowest level in over 20 months yesterday before recovering in today's trading session on the back of a decision by British Prime...

Stocks Fall Amid China Worries

European stocks slid, following a retreat in Asia, amid growing concerns about a slowdown in China and policy makers steps to address it. The dollar advanced...


Why $70 is so Important for Brent

October was a brutal month not only for the U.S. IT-Companies. Crude oil prices also had significant and important shifts. After renewing the 4-year highs...

Is the 'extreme fear' over now?

Chinese equities are developing a rebound on Friday, supported by the hopes for progress in China and the US trade negotiations. The telephone...

Dollar is waiting for what Powell says

The U.S. dollar has returned to growth on the comments from the Fed officials about the need of further rates increases this year and next one. At the end...

  


Share it on:   or