Economy in Brief

Japan was once an international trade juggernaut. It was unstoppable. Its exports flooded worldwide markets and Japan's trade surpluses were large and enduring. But that was then. Japan is still a very important global trader and [...]

• Loan applications for purchase surge. • Refinancing strength continues. • 15-year fixed rate mortgage declines to seven-year low of 2.87%. The Mortgage Bankers Association reported that its total Mortgage Applications Index rose [...]

• Home building still held back by coronavirus shutdowns last month. • Building permit increase suggests improvement is coming. New residential housing starts increased 4.3% during May (-23.2% y/y) to 974,000 (SAAR) from 934,000 in [...]

• Industrial production rose 1.4% in May after a downwardly-revised record 12.5% drop in April. • Manufacturing increased 3.8%; still at 1997 levels. • Motor vehicle output more than doubles but at just 36.4% of February level. [...]

The ZEW macroeconomic index 'improved' slightly in the EMU, rising to -89.6 in June from -95.0 in May. The gain on the month is small and the reading itself is still at an exceptionally weak mark. Germany improved to an -83.1 reading; [...]

• Housing market continues to recover. • Rebound leaves activity below December's peak. The Composite Housing Market Index from the National Association of Home Builders-Wells Fargo moved up to 58 during June and added to its May rise [...]

• Industrial production rose 1.4% in May after a downwardly-revised record 12.5% drop in April. • Manufacturing increased 3.8%; still at 1997 levels. • Motor vehicle output more than doubles but at just 36.4% of February level. [...]

• Consumer spending posts surprising, record increase. • Discretionary spending rebounds sharply, reflecting pent-up demand. Total retail sales, including food service establishments, increased a record 17.7% (-6.1% y/y) during May [...]