Economy

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US Producer price inflation continues elevated, all be it off low Covid lockdown bases. Annual PPI rose to 7.8% in July. Biggest price increases were nearly 3/4 due to a 1.1% in services costs, the largest increase since data were first calculated in December 2009.

Japan was affirmed by rating agency Fitch at 'A' with a negative outlook adding it expects the Bank of Japan inflation target of 2% to remain out of reach. Fitch expects growth of 2.5% in 2021 and 3.0% in 2022, as the economy recovers from a 4.6% contraction in 2020.

US Consumer price inflation (CPI) continues elevated, all be it off low Covid lockdown bases. Annual CPI stayed at 5.4% in July, highest since August 2008. Biggest price increases again were food, new vehicles and shelter.

US consumer credit in June expanded 37.69 billion much higher than the estimated 23.0 billion with revolving credit $17.86 billion and nonrevolving credit $19.83 billion with stocks and home prices higher and an improving job market.

US in July added 943K non-farm payrolls jobs more than forecasted 850k as private payrolls added jobs. 703K June prev 850k was revised to 938k. Unemployment rate fell to 5.4% from 5.7%. US Average Hourly Earnings (M/M) rose to 0.4%.

The key ISM July US services index soared to an all time high 64.1 vs 60.1% in June,  the fourteenth straight month of growth for the services sector which accounts for over 80% of the US GDP.  Services industries pent-up demand with many supply chain disruptions bringing inflation risk and challenges with labor and product.

US Personal income was up 0.1% month-over-month in June with a 0.7% increase in compensation helping to offset a 2.0% decline in personal current transfer receipts. The Core-PCE Price Index, which excludes food and energy, increased 0.4% and was up 3.5% year-over-year (versus 3.4% in May).

Inflation continues to bubble along in Australia to the highest since Q3 2008. Australian consumer prices rose 0.8% in the second quarter. Automotive fuel prices climbed 6.5% and Electricity prices jumped 3.3%. The ABS expects the sharp jump in annual inflation to be temporary

Australia's consumer confidence dropped 3.5% last week, as Sydney, Victoria and South Australia remained under a lockdown says ANZ Roy Morgan. Sentiment around current economic conditions dropped 6%.

Australia's Markit preliminary PMIs for July saw Manufacturing at 56.8 (prior 58.6) and Services crash to a 14-month low 44.2 (prior 56.8) as renewed lockdowns aimed to bring the COVID-19 situation under control disrupt the economy.

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