Economy in Brief: December 2016

The consumer price index increased 0.2% (1.7% y/y) during November following an unrevised 0.4% October rise. The gain matched expectations in the Action Economics Forecast Survey. Prices excluding food & energy gained 0.2% (2.1% y/y) [...]

At today's meeting of the Federal Open Market Committee, the targeted fed funds rate was raised to between 0.50% and 0.75%, from 0.25% to 0.50%. It was the highest target since the end of 2008. The FOMC indicated that an improved [...]

It's a mixed bad for Euro-Area industrial output as output fell for the second month in a row. The October drop is a decline of only 0.1% and compares to a drop of 0.9% in September. In August IP had spurted by 0.9% and that gain [...]

Total business inventories declined 0.2% during October (+0.4% y/y) following no change in September, revised from a 0.1% increase. New data in this report showed that retail inventories declined 0.4% (+3.3% y/y) following no change. [...]

Industrial output declined 0.4% during November (-0.6% y/y) following a 0.1% October uptick, revised from no change. The latest reading disappointed expectations for a 0.2% decline in the Action Economics Forecast Survey. Factory [...]

Consumers grew cautious ahead of the holiday spending season. Total retail sales & spending at restaurants nudged 0.1% higher (3.8% y/y) during November following a 0.6% October rise, revised from 0.8%. A 0.4% increase had been [...]

The headline Final Demand Producer Price Index jumped 0.4% m/m (1.3% y/y) in November after having been unchanged in October. The Action Economics Forecast Survey had looked for a 0.1% m/m rise. This was the highest y/y rate of [...]

The main take away from the Zew report in December The main take away from the Zew report in December is that globally conditions are in flux. Brexit is an issue, Zew experts see Italy deteriorating. The US is expected to perform [...]