U.S. Industrial Production rose by 0.4% (month-over-month) in March, 2013. The rise was mainly due to a 5.3% jump in the output of utilities. Manufacturing output, which accounts for approximately 75% of the total, fell by 0.1%. Within manufacturing, however, the output of motor vehicles and parts rose by 2.9%. Mining production fell by 0.2%. Year-over-year, industrial production rose by 3.5%.
U.S. Housing Starts rose by 7.0% (month-over-month) in March, 2013 to an annual rate of 1,036,000. Single-family homes, which account for approximately 70% of construction,fell by 4.8%, while structures with 5 units or more rose by 26.9%. Building permits, which measure future building activity, fell by 3.9%. Economists believe that a healthy housing market requires housing starts to grow at an annual rate of approximately 1.2 million.
The ZEW Indicator of Economic Sentiment for Germany over the next six months decreased by 12.2 points (month-over-month) to a reading of 36.3 in April, 2013. ZEW President Dr. Clemens Guest provided his take on the down tick, “basically, the surveyed financial market experts remain confident, but are less optimistic than they have been in the previous month. The decline in economic sentiment is consistent with the release of economic data that fell short of expectations.”
U.S. Unemployment fell to 7.7% in February, 2013. Non-farm payrolls rose by 236,000. The private sector grew by 246,000, while government employment fell by 10,000. Non-farm payrolls in January were revised lower from +157,000 to +119,000.
U.S. Initial Jobless Claims fell by 7,000 to 340,000 in the week ending March 2nd, 2013. The 4-week moving average fell by 7,000 to 348,750, its lowest level since March 2008. The previous jobless claims number was upwardly revised to 347,000. A weekly jobless claims number below the 350,000 mark is usually an indicator of job growth.
The European Central Bank kept its key interest rate on the main refinancing operations unchanged at 0.75%. The marginal and deposit lending rates were also unchanged at 1.50% and 0.00%, respectively.
The Bank of Japan kept its key interest rate unchanged at around 0 to 0.1%.
The Eurozone’s Gross Domestic Product fell by 0.6% (quarter-over-quarter) in the 4th Quarter, 2012. The decline was mainly due to a 0.4% drop in household consumption, a 1.1% decline in fixed capital investments, and a 0.9% fall in exports.
Eurozone’s Retail Sales rose by 1.2% (month-over-month) in January, 2013.
Japan’s Consumer Price Index remained unchanged (month-over-month) in January, 2013. Food rose by 1.4%, while clothes & footwear fell by 5.3%. Year-over-year, CPI fell by 0.3%, led by a 5.3% decline in furniture and household utensils.
Eurozone Unemployment rose to 11.9% in January, 2013. This is a record high. Eurostat estimated that 18.998 million were unemployed in January, 222,000 more than in December. Among the eurozone countries, Austria recorded the lowest rate at 4.9%, while Spain had the highest rate at 26.2%. Eurozone unemployment in January 2012 was 10.8%.
U.S. Initial Jobless Claims fell by 22,000 to 344,000 in the week ending February 23rd, 2013. The 4-week moving average fell by 6,750 to 355,000. The previous jobless claims number was upwardly revised to 366,000. A weekly jobless claims number below the 350,000 mark is usually an indicator of job growth.
U.S. Gross Domestic Product increased at an annual rate of 0.1% (quarter-over-quarter) in the October-December, 2012 period. The 0.2 percentage point increase in the second estimate was primarily due to an upward revision in exports and nonresidential fixed investment.
The Eurozone ‘s Harmonized Index of Consumer Prices fell by 1.0% (month-over-month) in January, 2013. The decline was mainly due to a 3.8% drop in non-energy industrial goods and a 0.5% drop in services. Prices declined the most in Italy (-2.0%), Spain (-1.8%), and Belgium (-1.8%). Year-over-year, prices rose by 2.0%.
Germany’s Consumer Price Index is expected to rise by 0.6% (month-over-month) in February, 2013. Year-over-year, CPI is expected to increase by 1.5%. The final estimate will be released on March 12th, 2013.
Japan’s Industrial Production rose by 1.0% (month-over-month) in January, 2o13. The rise was mainly due to a 6.8% jump in transport equipment and a 6.6% increase in iron & steel. Year-over-year, industrial production fell by 5.3%.
U.S. Durable Goods Orders fell by $11.8 billion or 5.2% (month-over-month) in January, 2013 to $217.0 billion. The decline was due to a $14.71 billion (-9.8%) decrease in transportation equipment. Within transportation equipment, defense aircraft and parts fell by $5.1 billion (-63.8%). However, excluding volatile transportation, new orders rose by 1.9%.
The U.S. Consumer Confidence Index rose by 11.2 points (month-over-month) in February, 2013 to 69.6 points. According to Lynn Franco, Director of Economic Indicators at The Conference Board, the rebound was primarily due to consumers adjusting to the fiscal cliff uncertainty and to the payroll tax cut that expired in the beginning of the year. The Present Situation Index increased to 63.3 from 56.2, while the Expectations Index rose to 73.8 from 59.9. A reading of 90 indicates a healthy economy.
Germany’s Gross Domestic Product fell by 0.6% (quarter-over-quarter) in the 4th Quarter, 2012. The decline was primarily due to a 2.0% drop in the exports of goods and services, and a 0.7% drop in gross fixed capital formation. Domestic consumption rose by 0.2%. Year-over-year, GDP rose by 0.1%.
U.S. Existing Home Sales rose by 0.4% (month-over-month) in January, 2013 to an annual rate of 4.92 million. First time buyers accounted for 30% of the sales, unchanged from December. From the houses sold, distressed properties accounted for 23% of the sales compared to 24% in December. Inventory declined by 4.9% to 1.74 million. The median price for all housing types was $173,600, a year-over-year rise of 12.3%. Year-over-year, existing home sales rose by 9.1%. Existing home sales in December were revised lower to an annual rate of 4.90 million.
U.S. Initial Jobless Claims rose by 20,000 to 362,000 in the week ending February 16th, 2013. The 4-week moving average rose by 8,000 to 360,750. The previous jobless claims number was upwardly revised to 342,000. A weekly jobless claims number below the 350,000 mark is usually an indicator of job growth.
The U.S. Producer Price Index rose by 0.2% (month-over-month) in January, 2013. Three quarters of the rise was due to a 0.7% increase in the index for consumer foods, with a 39% spike in the price for fresh and dry vegetables leading the way. Energy goods fell by 0.4%, mainly due to a 2.1% drop in the price for gasoline. Core PPI, which excludes foods and energy, rose by 0.2%, led by a 2.5% increase in the index for pharmaceutical preparations. Year-over-year, PPI rose by 1.4%.
U.S. Housing Starts fell by 8.5% (month-over-month) in January, 2013 to an annual rate of 890,000. Single-family homes, which account for approximately 70% of construction, increased by 0.8%, while structures with 5 units or more fell by 26.1%. Building permits, which measure future building activity, rose by 1.8%. Economists believe that a healthy housing market requires housing starts to grow at an annual rate of approximately 1.2 million.
Germany’s Consumer Price Index fell by 0.5% (month-over-month) in January, 2013. Prices were weighed down in part by a legislative decision in abolishing a quarterly standard medical consultation charge. Year-over-year, CPI rose by 1.7%.
The ZEW Indicator of Economic Sentiment for Germany over the next six months increased by 16.7 points (month-over-month) to a reading of 48.2 in February, 2013. This is the highest reading since April, 2010. ZEW President Wolfgang Franze provided his take on the uptick, “the financial market experts have made their peace with the weak fourth quarter of 2012. In their opinion the German economy faces less headwinds from the euro crisis than throughout the last months. If this situation remains unchanged during the next months, German business activity may pick up speed moderately.”
