Economy in Brief: May 2014

Housing starts in April gained 13.2% to 1.072 million (AR, 26.4% y/y) from 947,000 during March, revised from 946,000. The latest figure was the highest since November and easily beat expectations for 980,000 starts in the Action [...]

Industrial output's trend slowed in April, as output fell by 0.6% following a 2% spurt in March. Utilities' output fell sharply by 5.2% after a 0.3% gain in March. Mining output continues to be strong, slowing to a 1.4% gain after a [...]

Consumer prices increased 0.3% (2.0% y/y) in April, the largest increase since last June. The number equaled consensus expectations in the Action Economics Forecast Survey. The pick-up in the year-on-year change from 1.5% in March to [...]

Initial claims for unemployment insurance dropped to 297,000 (-16.3% y/y) in the week ended May 10 from 321,000 in the week ended May 3, revised from 319,000. Expectations had been for 320,000 claims in the Action Economics Forecast [...]

The euro area put in a disappointing performance in the first quarter of 2014 as GDP is only rising at a 0.8% annual rate. Among the early reporters, GDP declined in Portugal, dropped sharply in the Netherlands, fell in Italy and fell [...]

Industrial production momentum in the euro area has been short-circuited in March. Industrial production excluding construction fell by 0.3%. Combined with a decline in January, the three-month growth rate logs a -0.8% annual rate. [...]

Lower mortgage rates are prompting an increase in home-financing activity. The Mortgage Bankers Association reported that their total Mortgage Market Volume Index increased 3.6% last week (-58.5% y/y) but remained in the sideways [...]

Pricing power improved last month throughout much of the economy. The overall final demand PPI increased 0.6% (2.1% y/y) during April following an unrevised 0.5% March gain. It was the largest increase since September 2012 and easily [...]