Rising core PPI and disappointing industrial production in the US
US: PPI (Jan.): 0.4% m/m as expected (prior: 0.0% revised from -0.1%)
- PPI y/y: 2.7% vs 2.4% expected (prior: 2.6%)
- Core PPI: 0.4% m/m vs 0.2% expected (prior: -0.1%); 2.2% y/y vs 2.0% expected (prior: 2.3%)
- The annual increase in core PPI is close to a 6-year high, which partly reflects the upward pressure on import prices from the weaker dollar and provides further evidence that inflationary pressures are set to build this year.
US: Industrial production (Jan.): -0.1% m/m vs 0.2% expected (prior: 0.4% revised from 0.9%)
- Manufacturing production was flat m/m (vs 0.3% expected) and previous readings were revised slightly lower.
- Except the 0.6% m/m rise in utilities output, which was due to the unseasonably cold temperatures in some regions, the weakness in January was broad-based.
- Along with the weaker retail sales data released yesterday, this report provides further evidence that economic growth may (yet again) disappoint in Q1.
US: Philadelphia Fed. (Feb.): 25.8 vs 21.8 expected (prior: 22.2)
- Unexpected increase with a solid rise in new orders, in employment but also in prices paid.
US: Empire manufacturing (Feb.): 13.1 vs 18.0 expected (prior: 17.7)
- New orders slightly increased while employment and prices paid rose more meaningfully.
- These two regional surveys confirms that manufacturers continue to be optimistic for the economic activity.
US: Initial jobless claims (Feb. 10): 230k vs 228k expected (prior: 223k revised from 221k)
US: NAHB housing market index (Feb.): 72 as expected (prior: 72)
- Homebuilders' confidence remains close to the highest level since 1999.
- The measure on the 6-month outlook reached its highest since 2005.
Russia: Industrial production (Jan.): 2.9% y/y vs -0.5% expected (prior: -1.5%)