Economy in Brief: July 2020

Japan's economy watchers current index jumped to 38.8 in June from 15.5 in May. The index had largely been in a range from 37 to 47 from August 2019 to January 2002. It then slipped to 27.4 in February and again to 14.2 in March and [...]

• 15-year fixed rate mortgage eased to record low. The Mortgage Bankers Association reported that its total Mortgage Applications Index increased 2.2% (71.1% y/y) during the week ending July 3 after falling for two straight weeks. [...]

With lockdown measures having been partially lifted in recent weeks, prospects for the UK economy seem to have improved. On the data front there has been some validation for that view as the composite PMI jumped sharply to 47.5 in [...]

Germany logged its first rise in IP in three months. Even so, the gain was less than expected and the ongoing drop in German IP overall as well as by sector (see graph) remains severe. The EU is preparing some sort of a stimulus [...]

• Job openings increase. • Hiring strengthens. • Layoffs fall dramatically and quits rise. The Bureau of Labor Statistics reported that the total job openings rate rose to 3.9% during May and recovered April's decline due to [...]

• Gasoline prices continue upward. • The cost of crude oil strengthens. • Natural gas prices improve. The price for regular gasoline improved to $2.18 per gallon (-20.6% y/y) in the week ended July 6 from $2.17 in the previous week. [...]

• Overall reading jumps to four-month high. • Business activity is pronounced. • Pricing power improves. Continued re-openings of businesses are reflected in the latest report from the Institute for Supply Management (ISM). The [...]

Germany's orders rebounded sharply in May after a devastating run of extreme weakness in March and April. Still over the last 24 months, there have only been eight monthly increases as there has been a period of weakness that preceded [...]