- Increase extends prior month’s gain.
- Prospective buyer traffic is strong.
- Regional changes are mixed.
by:Tom Moeller
|in:Economy in Brief
- Imported fuel prices fell 0.3% m/m while nonfuel prices were unchanged.
- For exports, the December decline reflected lower nonag and ag prices.
by:Sandy Batten
|in:Economy in Brief
- Total inventories declined 0.1% m/m, led by wholesalers.
- Total sales edged up 0.2% m/m.
- Inventory/sales ratio was unchanged in November.
by:Sandy Batten
|in:Economy in Brief
- Average gasoline prices down 2 cents in Jan. 15 week.
- Crude oil prices down 47 cents per barrel.
- Natural gas prices near recent highs.
- USA| Jan 17 2024
U.S. Mortgage Applications Rose Sharply in the Latest Week
- Total mortgage applications surged 10.4% in the week ended January 12.
- Applications for loans to purchase and to refinance also posted strong rises.
- The average effective rates on fixed-rate loans dropped in the latest week.
- USA| Jan 16 2024
U.S. Empire State Manufacturing Index Collapses in January
- Reading falls 29 points to lowest level since May 2020.
- Component declines are widespread, though employment & price readings move higher.
- Six-month outlook improves again.
by:Tom Moeller
|in:Economy in Brief
Global| Jan 16 2024
ZEW: Economic Situation Improves on the Month in the Euro Area and the U.S.
The ZEW economic situation in January 2024 improved in the euro area and in the United States as it deteriorated in Germany. Two of the three metrics retain large negative readings and all three remained very weak in their respective historic queue of data.
The euro area economic situation improved from -62.7 in December to -59.3 in January. The U.S. situation improved from +7.8 in December to a stronger +15.3 in January, while Germany slipped from -77.1 in December to marginally weaker -77.3 this month. The U.S. current situation is the best of the lot, but still below its historic median with a ranking at its 42.2 percentile, below its median which occurs at a percentile ranking of 50. The euro area has a ranking in its 25.9 percentile and Germany has a ranking in its 14-percentile.
Asia| Jan 15 2024
Economic Letter From Asia: Assessing Australia
In this week’s letter, we investigate the Australian economy, a major producer of various global commodities, including iron ore, copper, and lithium, among others. We start by looking at recent monetary policy developments in Australia, against a backdrop of still-high inflation. We next examine trends in Australia’s household sector, taking stock of slowing consumption growth and moderating debt levels. Closely tied to household debt is the property sector, which has started to see firmer prices again after a respite in early 2023. We then touch on Australia’s labour market, which remains tight but with persistent real wage losses due to high inflation. Lastly, we look at Australia’s trade, with a focus on China, a key trading partner. We note strong growth in Australia’s exports to China, aided in part by iron ore, amid slowing shipments to advanced Asian economies.
Monetary policy Australia has undergone significant monetary tightening in recent years to tackle inflation. Specifically, the Reserve Bank of Australia (RBA) has raised its policy rate by a total of 425 bps since April 2022, 125 bps of which occurred in 2023 (chart 1). Headline CPI inflation has cooled significantly since, to 4.3% y/y in November 2023, from a peak of 8.4% in December 2022, as pressures from food and housing prices cooled. With that said, consumer inflation remains far from the RBA’s target of between 2% and 3%, making RBA rate cuts unlikely, at least in the immediate months ahead.
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