New US data did not add positive

20 September, 2017

New US data did not add positive

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  
Trump: Jobs, jobs, jobs!

Data released on Friday showed US job growth accelerated in October after hurricane-related disruptions in the prior month, but a sharp retreat in average earnings and an increase...

UK Interest Rates in Focus

The Bank of England is widely expected to raise UK interest rates for the first time in 10 years today. An expected 0.25% rise, to 0.5%, will push...

Strong US Q3 GDP Boosts USD

The US Commerce Department released Q3 GDP data on Friday, showing the US economy expanded at an annual pace of 3%. With the back-to-back...


So, Who Will Be the Next Fed Chair?

The markets are turning their attention to who will become the next Chairperson of the Federal Reserve. President Trump recently commented that...

Bank of England Faces Conundrum

On Wednesday, data released by the UK Office for National Statistics (ONS) showed average weekly earnings (excluding bonuses) rose...

UK Inflation at 5-Year High

The likelihood of a rise in UK interest rates, for the first time in a decade, gained momentum on Tuesday as UK CPI edged up from 2.9% to 3.0%...


US Inflation Disappoints

US Consumer Price Index data was released and failed to impress the markets. With US gasoline prices spiking, following the disruption caused by the recent Hurricanes...

Can CPI Follow PPI Lead?

In early Friday trading, the markets are relatively static as they wait, in anticipation, for today’s US inflation data that will potentially give confirmation...

Fed Minutes: Inflation Conundrum

USD broadly declined as the markets digested the release of last month’s FOMC meeting minutes. Many FOMC Members are still concerned...

  


Share: