US Economy Update. Key Insights. Macro Pulse. October 2015
|
|
- Marianna McGee
- 5 years ago
- Views:
Transcription
1 US Economy Update October 2015 MACRO REPORT Key Insights Monica Defend Head of Global Asset Allocation Research Andrea Brasili Senior Economist Global Asset Allocation Research Also contributing Riccardo Soggiu Senior Economist, Central Banks Global Asset Allocation Research Outlook: Final Q2 GDP tells a story of sustained consumption growth, fueled by gains in the labor market and further helped by purchasing power gains due to low oil prices. These factors have allowed US consumers to become more cautious (savings rate rose further) while simultaneously sustaining growth. These gains will not wane soon, and constitute strong insurance for US economic growth, despite challenges coming from external demand (strengthening USD, slowing EM growth). Inflation: To say it with Chairwoman Yellen, the 12-month change in total Personal Consumption Expenditures (PCE) prices is likely to rebound to 1-1/2 percent or higher in 2016, barring a further substantial drop in crude oil prices and provided that the dollar does not appreciate noticeably further. In addition, the contribution to low inflation from labour market slack has been steadily declining. The persistency of core inflation and the appearance of some wage pressures suggest that headline inflation will bounce back quite rapidly at the start of 2016, converging to core and nearing 2% for CPI inflation (likely a bit less for PCE deflator, as usual). On the monetary policy front: we expect the Central Bank to start hiking rates in one of the last two meetings of 2015, althought clearly the Fed has signalled that it prefers to err on the side of caution, and that it will take into account external conditions more than in the past. Graduality, in our view, is and will be the code word for the upcoming rate normalization. Macro Pulse Source: Pioneer Investments. Data available as of October 1,
2 Economic Conditions Growth & Economic Trend We learned that US GDP rose by a notable 3.9% QoQ annualized in Q2, giving a picture of a healthy economy, with personal consumption (up 3.6% QoQ annualized and contributing 2.42% to GDP growth) being the primary engine of growth. In general, domestic demand was particularly strong with investments up both in the residential (9.4% QoQ, slightly slowing but still a huge pace) and non residential (+4.1% QoQ annualized, accelerating) components. Net exports contributed positively, albeit marginally, but any assessment is made difficult by the volatility due to the erratic Q1 figures. The US economy rebound in Q2 was stronger than suggested by the first releases, thanks to consumption and investments. Figure 1. US GDP Contributions 6% 4% 2% 0% -2% -4% 2012:Q1 2012:Q4 2013:Q3 2014:Q2 2015:Q1 Economic Health in the Macro Pulse PCE Resid. Investment Non Res. Investment Gov.Cons Inventories Net Export Source: U.S. Bureau of Economic Analysis, Datastream, Pioneer Investments, as of September 28, It is in any event clear that the strength of the USD is putting some pressures on the manufacturing sector (and on inflation, see below). Government consumption gave a non trivial positive contribution (after two quarters of slight negative ones) while inventories was neutral after a huge contribution in Q1. Fueling consumption: the pace of PCE has been quite strong recently, with the average of the last 4 quarters at 3.3% QoQ ann. versus 1.8% in the period Q1, as the graph below shows. Figure 2. PCE QoQ annualized in the Period Q2 5,0% 4,0% 3,0% 2,0% 1,0% 0,0% Q2 11 Q4 11 Q2 12 Q4 12 Q2 13 Q4 13 Q2 14 Q4 14 Q2 15 Source: U.S. Bureau of Economic Analysis, Datastream, Pioneer Investments, as of September 28, There are two main factors behind this performance, the further strengthening of the labour market (more on that below) and the improvements in real disposable income due to the decline in oil and commodity prices. It is obvious that there has 2
3 been a quite strong increase in real disposable income, that has allowed consumers to spend more while maintaining a relatively cautious (vis a vis historical experience) stance, as reflected in a stable savings rate in the proximity of 5%. Real disposable income rose notably due to declining energy prices. Savings rates are quite stable. Figure 3. Real Personal Income and Savings as a % of Disposable Income 8% 6% 4% 2% 0% -2% -4% 12% 10% 8% 6% 4% 2% -6% 0% Jan-04 Dec-05 Nov-07 Oct-09 Sep-11 Aug-13 Jul-15 Real personal income (PCE deflated) Source: Bloomberg, Pioneer Investments, as of September 28, Savings rate RS Looking at PCE in real terms in late summer, it seems that in Q3 growth continued at approximately the same pace as in Q2 (real PCE rose by 0.3% MoM in July and by 0.4% in August, and even a slowing in September to 0.2% would mean hitting another 3.6% QoQ ann. for the quarter). Another confirmation of the current positive situation for US consumers comes from the housing market; as noted, residential investment rose 9.4% in Q2 after 10.1% in Q1. While the summer has seen growth continuing, it has been less uniform: New Home sales rose both in July and in August, but building permits and housing starts were much bumpier. Nonetheless, National Homebuilder optimism in September hit its highest level since November 2005, suggesting that the combination of an improving personal situation and continued extremely low interest rates is powerful. Residential investments were strong in H1 2015, and housing market indicators are continuing to trend up gently. Index Figure 4. Housing Market is Uptrending Without Excesses Thousand of Units Source: Bloomberg, Pioneer Investments, as of September 28, In our view: labour market improvements will still be the most carefully watched issue in the US economy. The unemployment rate dropped to 5.1% in August, a notch higher than the Fed members median estimation of the long term natural rate (4.9%). It must be kept in mind that the Fed clearly stated that in the period in which inflation is expected to approach the target, the economy should continue to 3
4 Two aspects of the labour market continue to lag a bit: the low participation rate, and the high level of employees working part time. But job quits and openings are telling a different story. grow (as it is doing now) slightly more than potential and hence the unemployment rate could fall below its natural level. Chairwoman Yellen also suggested that some slack remains in the labour market, hinting at the usual concepts to highlight it: participation rate, the number of people working part time who would prefer to work full time, and the churn rate. Let s review them quickly. The participation rate has declined quite steadily, plateauing around 62.6% in recent months (the lowest since 1978), as compared to around 66% before the crisis. While there is surely a demographic component here, there is also evidence of a pool of potentially available workers, restraining the market power of current employees. The number of people working part time for economic reasons (i.e. they would rather work full time) declined 500k units from the peaks in 2013, but it is still 1000k higher than the average in the period Let s look at the churn rate, i.e., people changing employers, which is the easiest way to increase wages. It was on average 2% of the workforce monthly from , and after bottoming around 1.3% in 2009 it is now at 1.9%. Hence, while some slack may remain in the labour market (and more than is suggested by unemployment being close to its natural rate) it is clearly on the wane. Moreover, the upturn in job openings clearly suggests that the moment in which we will see more evidence of wage pressures may be near. Figure 5. US Labor Market Indicators , ,0 Thousand ,5 1,0 0,5 Thousand of Units 0 0,0 Part time worker f.e.r. Jolts Quits rate RS Source: Bloomberg, Pioneer Investments, as of September 28, We have outlined a number of areas in which the US economy is displaying improvement. However, it is clear that uncertainties in the global environment have increased, particularly regarding the pace of growth in EMs. We have plugged in a less favourable scenario for two of the external variables involved in our forecasting model. The first is the dynamics of world trade growth that, after a fairly weak H1, we now expect to mildly accelerate, converging towards 3%-3.1% in the course of the forecasting horizon.the second is the nominal effective exchange rate, which we expect to appreciate a little further in the last part of the year. In this context, US growth will accelerate in coming quarters, but to a lesser degree than in our previous forecasts. According to our forecast, GDP growth will hit a peak in YoY terms in Q1 2016, maintain a reasonably high cruise speed in , and will be at 2.6% this year, 2.7% in 2016, slowing to 2.1% in Just for the sake of easy comparison with Fed projections, Q4 YoY growth will be 2.6%, 2.4% and 2.0% in the three years, vs. 2.1%, 2.3% and 2.2% (the median projections by FOMC members). 4
5 Headline inflation will likely catch up to core at the start of 2016, likely surpassing 2%, partly thanks to some mild wage pressures. Growth will likely be sustained by PCE, projected to be rise 3.1% this year and 2.8% the next. Consumption will moderate a bit in Residential investments will be strong for the whole year and at the beginning of 2016, but then will slow due to a rise in interest rates. Conversely, we expect non residential investments to accelerate in Net exports will be a drag on growth this year and to a lesser degree in 2016, before turning marginally positive in The opposite will happen to inventories, likely neutral this year and negative in We have talked a bit about inflation; assuming a further (mild) appreciation of the USD and a slight rise in oil and commodity prices, prices will go up as the base effect of the Q Q drop in oil prices will vanish. Given the appearance of some mild wage pressures, it seems likely that headline CPI will rapidly converge to the core rate and possibly stay above 2% in Wages should continue a slight upward trend, helping to strengthen consumption. Economic Policies The US economy no longer seems to require interest rates at the emergency 0 to 0.25% level. Monetary policy The Fed has been preparing financial markets for a future rate increase for some time now. After the «taper tantrum» of the spring of 2013, the Fed has appeared to be very wary of making unexpected moves that might surprise financial markets and thus lead to undesired volatility in financial asset prices. It has therefore made every effort since then to clearly indicate its intentions well in advance. One of the ways in which «Quantitative Easing» has led to higher economic growth, apart from reducing the cost of finance for investments, is via the «asset price inflation» it has created; this has led the owners of assets such as housing and shares to «feel richer» and thus progressively reduce their precautionary savings (which were a significant drag on consumer demand during the more acute phases of the financial crisis). At the April FOMC meeting the prospect of an initial rate hike from June onwards was specified as being data dependent (unemployment and inflation data in particular). In recent meetings the Fed continued to signal «that it will be appropriate to raise the target rate for the Fed Funds rate when it has seen FURTHER improvement in the labor market and is reasonably confident that inflation will move back to its 2% objective over the medium term». At present, the US economy is expanding at a positive but not particularly brisk pace, while the Unemployment Rate has progressively declined in recent years. Despite the (energy and strong US$ induced) dip in headline inflation so far this year, the US economy no longer seems to require interest rates at the emergency 0 to 0.25% level. Consistent with the «dots» that accompany the official Fed statement, we expect interest rates to begin to increase at one of the remaining 2015 Fed meetings, initially moving to a 0.25% fed funds target, up from the current 0 to 0.25% range. Thereafter the Fed will evaluate the reaction of economic data and of financial markets before enacting further rate increases. While these are quite likely going forward, at the present time an aggressive rate hiking cycle of increases at every meeting is not forecast and does not appear to be in any way likely after having been virtually ruled out by Chairman Yellen in her testimonies so far in A more probable scenario is one where the Fed waits up to several meetings after each increase before raising interest rates again. A strong US$ on FX markets and weak worldwide economic growth are likely to act as limiting factors on the Fed s ability and desire to raise interest rates at a sustained pace. 5
6 2015 Triggers and Risks Triggers Stronger-than-expected global growth and trade, resulting in higher demand for U.S. exports, despite strong USD. Improvements in consumer balance sheets, coupled with stable income growth and anchored inflation expectations, could trigger higher confidence and support more sustained patterns of consumption than we currently envisage. Upside for consumption could come from lower oil price and lower inflation. Trans-Pacific Partnership implementation could support investments and confidence. Risks A significantly stronger USD might adversely influence the export sector by making U.S.-produced goods and services more expensive in foreign markets. Lower oil price could have sharper-than-expected effect on investments in oil and gas sector. Despite adjustments in fiscal policy so far, we remain concerned that over the medium term healthcare and social spending could be an important drag on fiscal balances. Renewed geopolitical tensions, involving directly or indirectly the U.S.; particularly renewed tensions with Russia, and the IS story in Middle East. 6
7 Macroeconomic Forecast US E 2016E 2017E E 2016 E 2017 E Macroeconomic Forecasts Q1 Q2 Q3 Q4 Q1 Q2 Q3E Q4E Q1E Q2E Q3E Q4E Q1E Q2E Q3E Q4E GDP & Components % YoY % QoQ Annualized % QoQ Annualized % QoQ Annualized % QoQ Annualized GDP Personal Consumption Expenditures Government Consumption Expenditures Fixed Investment Nonresidential Residential Total Internal Demand Total Consumption + Fixed Investment+Inventories Final Internal Demand Total Consumption + Fixed Investment Exports Imports GDP Contributions Net trade Inventories changes Economic Trend % YoY % YoY % YoY % YoY Industrial Production Average Hourly Earnings Unit Labour Cost Producer Prices Index Consumer Prices Index Unemployment Rate Source: Pioneer Investments, Bloomberg, Datastream. Update as of 30th of September 2015; for time series with higher frequency (monthly or daily) than quarterly, we consider the quarterly average; in Italic exogenous variables; GDP components on quarterly frequency are %Q/Q annualized rates; all other figures, if not otherwise specified, are %Y/Y. Important Information Unless otherwise stated, all information contained in this document is from Pioneer Investments and is as of October, 1, The views expressed regarding market and economic trends are those of the author and not necessarily Pioneer Investments, and are subject to change at any time based on market and other conditions and there can be no assurances that countries, markets or sectors will perform as expected. These views should not be relied upon as investment advice, as securities recommendations, or as an indication of trading on behalf of any Pioneer Investments product. There is no guarantee that market forecasts discussed will be realized or that these trends will continue. Investments involve certain risks, including political and currency risks. Investment return and principal value may go down as well as up and could result in the loss of all capital invested. This material does not constitute an offer to buy or a solicitation to sell any units of any investment fund or any services. Pioneer Investments is a trading name of the Pioneer Global Asset Management S.p.A. group of companies. Date of First Use: October 5, Follow us on: _1015 7
US Economy Update May 2014
US Economy Update May 2014 MACRO REPORT Key Insights Monica Defend Head of Global Asset Allocation Research Annalisa Usardi Economist, US & LATAM Global Asset Allocation Research Also contributing Riccardo
More informationEurozone Economy Update
MACRO REPORT Eurozone Economy Update September 2015 Key Insights Monica Defend Head of Global Asset Allocation Research Andrea Brasili Senior Economist Global Asset Allocation Research Also contributing
More informationUS Economy Update. Key Insights. Macro Pulse Outlook Edition MACRO REPORT
MACRO REPORT US Economy Update 2015 Outlook Edition Key Insights Monica Defend Head of Global Asset Allocation Research Elina Ribakova Senior Economist Global Asset Allocation Research Annalisa Usardi
More informationJapanese Economy Update
Japanese Economy Update September 2015 MACRO REPORT Key Insights Monica Defend Head of Global Asset Allocation Research Alessia Berardi Senior Economist Also contributing Riccardo Soggiu Senior Economist,
More informationJapan: Economy Update
Japan: Economy Update July 2015 MACRO REPORT Key Insights Monica Defend Head of Global Asset Allocation Research Alessia Berardi Senior Economist Also contributing Riccardo Soggiu Senior Economist, Central
More informationKey Insights. Macro Pulse. Japan was out of the technical recession in Q
MACRO REPORT Japan Economy Update March 2015 Key Insights Monica Defend Head of Global Asset Allocation Research Alessia Berardi Senior Economist Global Asset Allocation Research Also contributing Riccardo
More informationJapan Economy Update. Key Insights. Macro Pulse Outlook Edition MACRO REPORT
MACRO REPORT Japan Economy Update 2015 Outlook Edition Key Insights Monica Defend Head of Global Asset Allocation Research Alessia Berardi Senior Economist Global Asset Allocation Research Also contributing
More informationLeumi. Global Economics Monthly Review. Arie Tal, Research Economist. May 8, The Finance Division, Economics Department. leumiusa.
Global Economics Monthly Review May 8, 2018 Arie Tal, Research Economist The Finance Division, Economics Department Leumi leumiusa.com Please see important disclaimer on the last page of this report Key
More informationAfter the Rate Increase, What Then?
After the Rate Increase, What Then? Robert Eisenbeis, Ph.D. Vice Chairman & Chief Monetary Economist Bob.Eisenbeis@Cumber.com What the FOMC Did At Dec Meeting The Fed made the first step towards normalization
More informationOutlook for Economic Activity and Prices (July 2018)
Outlook for Economic Activity and Prices (July 2018) July 31, 2018 Bank of Japan The Bank's View 1 Summary Japan's economy is likely to continue growing at a pace above its potential in fiscal 2018, mainly
More informationEurozone. Economic Watch FEBRUARY 2017
Eurozone Economic Watch FEBRUARY 2017 EUROZONE WATCH FEBRUARY 2017 Eurozone: A slight upward revision to our GDP growth projections The recovery proceeded at a steady and solid pace in, resulting in an
More informationEurozone Economic Watch Higher growth forecasts for January 2018
Eurozone Economic Watch Higher growth forecasts for 2018-19 January 2018 Eurozone Economic Watch January 2018 Eurozone: Higher growth forecasts for 2018-19 Our MICA-BBVA model estimates a broadly stable
More informationEurozone Economic Watch. April 2018
Eurozone Economic Watch April 2018 Eurozone: solid growth and broadly unchanged projections, with protectionist risks BBVA Research - Eurozone Economic Watch / 2 Confidence has weakened in 1Q18 since the
More informationOctober 2016 Market Update
Market Update (10/2016) Allianz Investment Management LLC October 2016 Market Update Key Points The lack of further easing measures from both the Bank of Japan and the European Central Bank are causing
More informationEconomic Outlook, January 2016 Jeffrey M. Lacker President, Federal Reserve Bank of Richmond
Economic Outlook, January 2016 Jeffrey M. Lacker President, Federal Reserve Bank of Richmond Annual Meeting of the South Carolina Business & Industry Political Education Committee Columbia, South Carolina
More informationECONOMIC RECOVERY AT CRUISE SPEED
EBF Economic Outlook Nr 43 May 2018 2018 SPRING OUTLOOK ON THE EURO AREA ECONOMIES IN 2018-2019 ECONOMIC RECOVERY AT CRUISE SPEED EDITORIAL TEAM: Francisco Saravia (author), Helge Pedersen - Chair of the
More informationOutlook for Economic Activity and Prices (October 2017)
Outlook for Economic Activity and Prices (October 2017) October 31, 2017 Bank of Japan The Bank's View 1 Summary Japan's economy is likely to continue expanding on the back of highly accommodative financial
More informationMonitorING Turkey ING BANK A.Ş. Further fiscal support in the Medium Term Plan. Emerging Markets 4 October 2017
q ING BANK A.Ş. ECONOMIC RESEARCH GROUP MonitorING Turkey October 17 Emerging Markets October 17 USD/TRY MonitorING Turkey Further fiscal support in the Medium Term Plan In 17, accelerated spending and
More informationEconomic Outlook and Forecast
Economic Outlook and Forecast Stefano Eusepi Research & Statistics Group January 2017 All views expressed are those of the author only and not necessarily those of the Federal Reserve Bank of New York
More informationOutlook for Economic Activity and Prices (April 2010)
April 30, 2010 Bank of Japan Outlook for Economic Activity and Prices (April 2010) The Bank's View 1 The global economy has emerged from the sharp deterioration triggered by the financial crisis and has
More informationThe real change in private inventories added 0.22 percentage points to the second quarter GDP growth, after subtracting 0.65% in the first quarter.
QIRGRETA Monthly Macroeconomic Commentary United States The U.S. economy bounced back in the second quarter of 2007, growing at the fastest pace in more than a year. According the final estimates released
More informationOutlook for Economic Activity and Prices (January 2018)
Outlook for Economic Activity and Prices (January 2018) January 23, 2018 Bank of Japan The Bank's View 1 Summary Japan's economy is likely to continue expanding on the back of highly accommodative financial
More informationJul-Sep st Preliminary GDP Estimate
Japan's Economy 16 November 2015 (No. of pages: 5) Japanese report: 16 Nov 2015 Jul-Sep 2015 1 st Preliminary GDP Estimate Second consecutive quarter of negative growth due mainly to inventory adjustment
More informationEurozone Economic Watch. February 2018
Eurozone Economic Watch February 2018 Eurozone: Strong growth continues in 1Q18, but confidence seems to peak GDP growth moderated slightly in, but there was an upward revision to previous quarters. Available
More informationLATIN AMERICA OUTLOOK 4Q2016 OUTLOOK LATIN AMERICA. 4th QUARTER 2016
LATIN AMERICA OUTLOOK 4Q OUTLOOK LATIN AMERICA 4th QUARTER LATIN AMERICA OUTLOOK 4Q Main messages The global economy is heading for a slow recovery. Global GDP growth will improve slightly from the second
More informationLatin America Outlook. 1st QUARTER 2018
Latin America Outlook 1st QUARTER Main messages 1. Strong global growth continues. Forecasts revised up in in most areas. Growth stabilizing in. 2. Growth recovers in Latin America, reaching close to potential
More informationUS Economic Outlook Improving
Government Bonds Have Never Looked Less Attractive OUTLOOK Executive Summary Kenneth J. Taubes Chief Investment Officer, US Economic Outlook US GDP growth may lead growth among developed nations, at approximately
More informationU.S. Economic Update and Outlook. Laurel Graefe, REIN Director Federal Reserve Bank of Atlanta October 2, 2013
1 U.S. Economic Update and Outlook Laurel Graefe, REIN Director Federal Reserve Bank of Atlanta October 2, 213 Following the deepest recession since the 193s, the economic recovery is well under way, though
More informationRates Will Continue to Go Up in 2018
DECEMBER 1, RETAIL RATE FORECASTS Rates Will Continue to Go Up in #1 BEST OVERALL FORECASTER - CANADA HIGHLIGHTS ff The economic context remains very favourable. ff Interest rates will continue to rise
More informationThe President s Report to the Board of Directors
The President s Report to the Board of Directors April 4, 214 Current Economic Developments - April 4, 214 Data released since your last Directors' meeting show the economy was a bit stronger in the fourth
More informationMBA Forecast Commentary Joel Kan
MBA Forecast Commentary Joel Kan Economy & Labor Markets Strong Enough, First Rate Hike Expected in December MBA Economic and Mortgage Finance Commentary: November 2015 This month s outlook largely mirrors
More informationOutlook for Economic Activity and Prices (April 2018)
Outlook for Economic Activity and Prices (April 2018) The Bank's View 1 Summary April 27, 2018 Bank of Japan Japan's economy is likely to continue growing at a pace above its potential in fiscal 2018,
More informationAsian Insights What to watch closely in Asia in 2016
Asian Insights What to watch closely in Asia in 2016 Q1 2016 The past year turned out to be a year where one of the oldest investment adages came true: Sell in May and go away, don t come back until St.
More informationNational Economic Indicators. December 11, 2017
National Economic Indicators December 11, 17 Table of Contents GDP Release Date Latest Period Page Table: Real Gross Domestic Product Nov-9-17 8:3 Q3-17 Real Gross Domestic Product Nov-9-17 8:3 Q3-17 5
More informationEconomic ProjEctions for
Economic Projections for 2016-2018 ECONOMIC PROJECTIONS FOR 2016-2018 Outlook for the Maltese economy 1 Economic growth is expected to ease Following three years of strong expansion, the Bank s latest
More informationThe U.S. Economy: An Optimistic Outlook, But With Some Important Risks
EMBARGOED UNTIL 8:10 A.M. Eastern Time on Friday, April 13, 2018 OR UPON DELIVERY The U.S. Economy: An Optimistic Outlook, But With Some Important Risks Eric S. Rosengren President & Chief Executive Officer
More informationKey Insights. China Macro Pulse
MACRO REPORT China Economy Update March 2015 Key Insights Monica Defend Head of Global Asset Allocation Research Qinwei Wang Economist Global Asset Allocation Research Economic Conditions: China s macro
More informationGauging Current Economic Momentum. Dennis Lockhart President and Chief Executive Officer Federal Reserve Bank of Atlanta
Gauging Current Economic Momentum Dennis Lockhart President and Chief Executive Officer Federal Reserve Bank of Atlanta Rotary Club of Knoxville Knoxville, Tennessee August 16, 2016 Atlanta Fed President
More informationComparison of FRBNY Staff and Blue Chip Forecasts
Comparison of and Forecasts Real GDP Growth Forecasts % Change (AR) % Change (AR) May Note: The blue band represents the top and bottom averages of the Blue Chip survey. Source: and Economic Indicators
More informationThe Mid-Year Economic Forecast. June 20, 2018
The Mid-Year Economic Forecast June 20, 2018 Agenda National Economy: On a Solid Footing Construction & Housing: Still Strong Risks: What Could Go Wrong? 2 National Economy On a Solid Footing 3 GDP Grew
More informationProjections for the Portuguese Economy:
Projections for the Portuguese Economy: 2018-2020 March 2018 BANCO DE PORTUGAL E U R O S Y S T E M BANCO DE EUROSYSTEM PORTUGAL Projections for the portuguese economy: 2018-20 Continued expansion of economic
More informationMexico s Macroeconomic Outlook and Monetary Policy
Mexico s Macroeconomic Outlook and Monetary Policy Javier Guzmán Calafell, Deputy Governor, Banco de México* XP Securities Washington, DC, 13 October 2017 */ The opinions and views expressed in this document
More informationThe real change in private inventories added 0.15 percentage points to the second quarter GDP growth, after subtracting 0.65% in the first quarter.
QIRGRETA Monthly Macroeconomic Commentary United States The U.S. economy rebounded in the second quarter of 2007, growing at an annual rate of 3.4% Q/Q (+1.8% Y/Y), according to the GDP advance estimates
More informationEurozone Economic Watch. November 2017
Eurozone Economic Watch November 2017 Eurozone: improved outlook, still subdued inflation Our MICA-BBVA model for growth estimates for the moment a quarterly GDP figure of around -0.7% in, after % QoQ
More informationNordkinn Market Review & Outlook April 2018
Nordkinn Market Review & Outlook April 2018 Addressed to Nordkinn s Followers on LinkedIn for informational purposes Please note that the content of thetom Nordkinn Market Review & Outlook Report may not
More informationMonetary Policy Report: Using Rules for Benchmarking
Monetary Policy Report: Using Rules for Benchmarking Michael Dotsey Executive Vice President and Director of Research Keith Sill Senior Vice President and Director, Real-Time Data Research Center Federal
More informationEconomic Outlook In the Shoes of an FOMC Member
Economic Outlook In the Shoes of an FOMC Member This material must be read in conjunction with the disclosure statement. 9 April 2018 PRESENTED BY: MARKUS SCHOMER Chief Economist PineBridge Investments
More informationModerating Growth Expected in the Second Half; Housing Supply Still Lagging
Corporate Profits with IVA and CCAdj (SAAR, $, Year-over-Year % Change) Nominal Broad Trade-Weighted Exchange Value of the US$ Economic Developments July 2017 Moderating Growth Expected in the Second Half;
More informationEconomic and Financial Markets Monthly Review & Outlook Detailed Report January 2018
Economic and Financial Markets Monthly Review & Outlook Detailed Report January 1 NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE Overview of the Economy Business and economic confidence continue to
More informationEconomic activity gathers pace
Produced by the Economic Research Unit October 2014 A quarterly analysis of trends in the Irish economy Economic activity gathers pace Positive data flow Recovery broadening out GDP growth revised up to
More informationMACROECONOMIC FORECAST
MACROECONOMIC FORECAST Autumn 2017 Ministry of Finance of the Republic of Bulgaria The Autumn macroeconomic forecast of the Ministry of Finance takes into account better performance of the Bulgarian economy
More informationFirst Quarter. January March 2016
First Quarter January March 2016 Highlights First quarter showed positive momentum for design industry. Design firms in March reported strong and accelerating business after a weak January and February.
More informationMonetary Policy Report: Using Rules for Benchmarking
Monetary Policy Report: Using Rules for Benchmarking Michael Dotsey Executive Vice President and Director of Research Keith Sill Senior Vice President and Director, Real-Time Data Research Center Federal
More informationMarket Insight Economy and Asset Classes December Oil Prices Downtrending: The Real Global Economic Stimulus
Market Insight Economy and Asset Classes December 2014 Oil Prices Downtrending: The Real Global Economic Stimulus 2 Equities Markets Feature In Citi analysts view, the expansion phase the US are enjoying
More informationEditor: Felix Ewert. The Week Ahead Key Events 2 8 Oct, 2017
Editor: Felix Ewert The Week Ahead Key Events 2 8 Oct, 2017 Monday 2, 08.30 SWE: PMI Manufacturing (Sep) Index SEB Cons. Prev. PMI 60.5 -- 54.7 Manufacturing PMI showed an unexpectedly large fall in August.
More informationEurozone Economic Watch. July 2018
Eurozone Economic Watch July 2018 Eurozone: A shift to more moderate growth with increased downward risks BBVA Research - Eurozone Economic Watch July 2018 / 2 Hard data improved in May but failed to recover
More informationEditor: Thomas Nilsson. The Week Ahead Key Events 31 Jul 6 Aug, 2017
Editor: Thomas Nilsson The Week Ahead Key Events 31 Jul 6 Aug, 2017 European Sovereign Rating Reviews Recent rating reviews Friday, 21 July 2017 Agency previous new action Greece S&P B- / Stable B- /
More informationEconomic Summary. Visit us online at for the most recent market updates, Insights and Perspectives
Economic Summary During the June Meeting, the Federal Open Market Committee (FOMC) raised the federal funds rate by 25 bps to a range of 1.75% to 2.%. Encouraged by falling unemployment rates and rising
More informationEconomic and Financial Markets Monthly Review & Outlook Detailed Report October 2017
Economic and Financial Markets Monthly Review & Outlook Detailed Report October 17 NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE Overview of the Economy Business and economic confidence indicators
More informationWeekly Market Commentary
LPL FINANCIAL RESEARCH Weekly Market Commentary November 18, 2014 Emerging Markets Opportunity Still Emerging Burt White Chief Investment Officer LPL Financial Jeffrey Buchbinder, CFA Market Strategist
More informationMonetary Policy Report: Using Rules for Benchmarking
Monetary Policy Report: Using Rules for Benchmarking Michael Dotsey Senior Vice President and Director of Research Charles I. Plosser President and CEO Keith Sill Vice President and Director, Real-Time
More informationForex and Interest Rate Outlook 26th August 2015
Forex and Interest Rate Outlook 26th August 2015 Moderate recovery continues in advanced economies, but a weakening of activity in emerging economies is adding to global deflationary pressures Further
More informationEurozone Economic Watch. March 2018
Eurozone Economic Watch March 20 Eurozone Economic Watch March 20 Eurozone: The moderation of confidence continues We expect GDP growth to remain steady early this year supported mostly by strong global
More informationMonetary Policy Report: Using Rules for Benchmarking
Monetary Policy Report: Using Rules for Benchmarking Michael Dotsey Executive Vice President and Director of Research Keith Sill Senior Vice President and Director, Real-Time Data Research Center Federal
More informationGus Faucher Stuart Hoffman William Adams Kurt Rankin Mekael Teshome Chief Economist Senior Economic Advisor Senior Economist Economist Economist
July 217 Gus Faucher Stuart Hoffman William Adams Kurt Rankin Mekael Teshome Chief Economist Senior Economic Advisor Senior Economist Economist Economist Executive Summary Job Growth Picked Back Up Again
More informationFourth Quarter Market Outlook. Kim Huebner, CFA Don Powell, CFA Joseph Styrna, CFA
Fourth Quarter 2017 Market Outlook Kim Huebner, CFA Don Powell, CFA Joseph Styrna, CFA Economic Outlook Growth Increasing, Spending Modest, Low Unemployment 2017 2016 2015 2014 2013 2012 2011 GDP* Q3:
More informationMACROECONOMIC FORECAST
MACROECONOMIC FORECAST Spring 17 Ministry of Finance of the Republic of Bulgaria Bulgarian economy is expected to expand by 3% in 17 driven by domestic demand. As compared to 16, the external sector will
More informationDanske Bank March 1 ST 2016 Economic Update,
Monthly update: Tuesday 1 March 2016 Danske Bank Chief Economist, Twitter: angela_mcgowan Local job and investment announcements during January 2016: The NI economy suffered a significant blow during the
More informationThoughts on US Monetary Policy Prepared for Hutchins Center Conference, March 21, 2016
Thoughts on US Monetary Policy Prepared for Hutchins Center Conference, March 21, 2016 Richard H. Clarida Professor of Economics and International Affairs Columbia University Global Strategic Advisor PIMCO
More informationMonetary Policy as the Economy Approaches the Fed s Dual Mandate
EMBARGOED UNTIL Wednesday, February 15, 2017 at 1:10 P.M., U.S. Eastern Time OR UPON DELIVERY Monetary Policy as the Economy Approaches the Fed s Dual Mandate Eric S. Rosengren President & Chief Executive
More informationEconomic Projections :1
Economic Projections 2017-2020 2018:1 Outlook for the Maltese economy Economic projections 2017-2020 The Central Bank s latest economic projections foresee economic growth over the coming three years to
More informationThe U.S. Economic Outlook
The U.S. Economic Outlook Presented by: Sara Johnson Senior Research Director, Global Economics IHS Global Insight Sun Valley, Idaho September 20, 2010 A Subdued U.S. Economic Expansion U.S. economic growth
More informationAugust 2017 Market Update
Market Update (8/2017) Allianz Investment Management LLC August 2017 Market Update Key Points Upbeat GDP data from the second quarter along with another solid labor market report has begun to overshadow
More informationThe Fed and The U.S. Economic Outlook
The Fed and The U.S. Economic Outlook Maria Luengo-Prado Senior Economist and Policy Advisor Federal Reserve Bank of Boston May 13, 2016 Presentation prepared for the Telergee Alliance CFO & Controllers
More informationErdem Başçi: Recent economic and financial developments in Turkey
Erdem Başçi: Recent economic and financial developments in Turkey Speech by Mr Erdem Başçi, Governor of the Central Bank of the Republic of Turkey, at the press conference for the presentation of the April
More informationImproved Macroeconomic Conditions Boost Consumer Sentiment to Its Highest Level in 3½-Year
ECONOMIC REPORT Business & Consumer Confidence 17 April 2018 Improved Macroeconomic Conditions Boost Consumer Sentiment to Its Highest Level in 3½-Year MIER s CSI rebounded to 3.5-year high. Underpin by
More informationOutlook for Economic Activity and Prices (April 2017) Summary
April 27, 2017 Bank of Japan The Bank's View 1 Outlook for Economic Activity and Prices (April 2017) Summary Japan's economy is likely to continue expanding and maintain growth at a pace above its potential,
More informationInterest Rates Continue to Climb
SEPTEMBER 3, RETAIL RATE FORECASTS Interest Rates Continue to Climb # BEST OVERALL FORECASTER - CANADA HIGHLIGHTS ff North American economic growth rebounded in the spring. ff The Bank of Canada and the
More informationMeeting with Analysts
CNB s New Forecast (Inflation Report I/2018) Meeting with Analysts Tomáš Holub Prague, 2 February 2018 Outline 1. Assumptions of the forecast 2. The new macroeconomic forecast 3. Comparison with the previous
More informationGus Faucher Stuart Hoffman William Adams Kurt Rankin Chief Economist Senior Economic Advisor Senior Economist Economist.
January 218 Gus Faucher Stuart Hoffman William Adams Kurt Rankin Chief Economist Senior Economic Advisor Senior Economist Economist Executive Summary Another Fed Rate Hike in December, Inflation Remains
More informationThe return of US inflation
Economic and Financial Analysis 11 January 2018 Global Economics 11 January 2018 Article The return of US inflation Inflation is on the cusp of a turn, likely prompting a swift resonse from the Federal
More informationOct-Dec st Preliminary GDP Estimate
Japan's Economy 15 February 2016 (No. of pages: 5) Japanese report: 15 Feb 2016 Oct-Dec 2015 1 st Preliminary GDP Estimate GDP experiences negative growth for first time in two quarters hinting at risk
More informationLETTER. economic. Canadian GDP growth should accelerate in 2014 JANUARY Canada. United States. Interest rates. Oil and dollar.
economic LETTER JANUARY 2014 Canadian GDP growth should accelerate in 2014 At the beginning of last year, forecasters were anticipating, on average, that real GDP growth would reach 1.9 in the United States
More informationECONOMIC AND MARKET COMMENTARY OUR MISSION
ECONOMIC AND MARKET COMMENTARY OUR MISSION Smith Shellnut Wilson is a registered investment adviser* specializing in managing investment portfolios for banks, individuals, corporations, foundations and
More informationBNM Maintains OPR at 3.25%, Hawkish About Economic Outlook
7 March 2018 ECONOMIC REVIEW March 2018 BNM MPC BNM Maintains OPR at 3.25%, Hawkish About Economic Outlook Overnight Policy Rate maintained at 3.25%. In line with our expectation, overnight policy rate,
More information1.1. Low yield environment
1. Key developments Overall, the macroeconomic outlook has deteriorated since June 215. Although many European countries continue to recover, economic growth still remains fragile reflecting high public
More informationMonetary Policy Report: Using Rules for Benchmarking
Monetary Policy Report: Using Rules for Benchmarking Michael Dotsey Executive Vice President and Director of Research Keith Sill Senior Vice President and Director, Real-Time Data Research Center Federal
More informationMonetary Policy Report: Using Rules for Benchmarking
Monetary Policy Report: Using Rules for Benchmarking Michael Dotsey Executive Vice President and Director of Research Keith Sill Senior Vice President and Director, Real Time Data Research Center Federal
More informationThe Week Ahead Key Events 4 10 Jan, 2016
Editor: Carl Hammer The Week Ahead Key Events 4 10 Jan, 2016 Editor: Benjamin Dousa Monday 4, 08.30 SWE: PMI manufacturing (Dec) Index SEB Cons. Prev PMI 55.0 --- 54.9 Manufacturing confidence according
More informationGrowing for nearly a decade. 114 months and counting, through December Will become longest Post-War expansion if it lasts through July
Economic Update Closing in on Expansion Record Byron Gangnes Professor of Economics Senior Research Fellow, UHERO University of Hawaii at Manoa VLI February 219 Hawaii Island Growing for nearly a decade
More informationThe US Economic Outlook (with a Fed twist)
The US Economic Outlook (with a Fed twist) Presentation prepared for the Economic Outlook Conference 2011 January 13, 2011 Chapter 1: Why the FOMC went with QE2, an interpretive dance by David Altig, who
More informationMeeting with Analysts
CNB s New Forecast (Inflation Report III/2018) Meeting with Analysts Karel Musil Prague, 3 August 2018 Outline 1. Assumptions of the forecast 2. The new macroeconomic forecast 3. Comparison with the previous
More informationImplications of Low Inflation Rates for Monetary Policy
Implications of Low Inflation Rates for Monetary Policy Eric S. Rosengren President & Chief Executive Officer Federal Reserve Bank of Boston Washington and Lee University s H. Parker Willis Lecture in
More informationGDP Forecast Revised Due to Weak Global Outlook
5 July 2016 MONTHLY ECONOMIC REVIEW Jun 2016 GDP Forecast Revised Due to Weak Global Outlook Exports were down by 0.9%yoy in May, while trade balance moderated to RM3.2 billion. This was largely due to
More informationBTMU Focus Latin America Mexico: macroeconomic performance Mexico: (1Q 2015)
BTMU Focus Latin America Mexico: macroeconomic performance Mexico: (1Q 1) MUFG UNION BANK Economic Research (New York) Hongrui Zhang Latin America Economist hozhang@us.mufg.jp +1(1)- June, 1 Contents I.
More informationNATIONAL ECONOMIC OUTLOOK
November 2017 NATIONAL ECONOMIC OUTLOOK Gus Faucher Stuart Hoffman William Adams Kurt Rankin Mekael Teshome Chief Economist Senior Economic Advisor Senior Economist Economist Economist THE PNC FINANCIAL
More informationMonthly Economic Report
Monthly Economic Report April 19, 2018 Copyright Mizuho Research Institute Ltd. All Rights Reserved. 1. The Japanese Economy: the business conditions DI deteriorated; FY2018 fixed investment plans were
More informationNational Economic Indicators. May 7, 2018
National Economic Indicators May 7, 18 Table of Contents GDP Release Date Latest Period Page Table: Real Gross Domestic Product Apr-7-18 8:31 Q1-18 Real Gross Domestic Product Apr-7-18 8:31 Q1-18 5 Decomposition
More informationHKU announces 2015 Q4 HK Macroeconomic Forecast
Press Release HKU announces 2015 Q4 HK Macroeconomic Forecast October 6, 2015 1 Overview The APEC Studies Programme of the Hong Kong Institute of Economics and Business Strategy at the University of Hong
More informationGlobal Macroeconomic Monthly Review
Global Macroeconomic Monthly Review August 14 th, 2018 Arie Tal, Research Economist Capital Markets Division, Economics Department 1 Please see disclaimer on the last page of this report Key Issues Global
More information