Market insight

US: Industrial production (Dec.): 0.3% m/m vs 0.2% expected (prior: 0.4% revised from 0.6%)

• Production has increased further thanks to a rebound in auto, while activity has recessed in utility; production was also sustained in electronics, defense and for construction supply.

US: Consumer confidence (Michigan) (Jan.): 110 vs 116 expected (prior: 116.1)

• According to preliminary data, sentiment has decreased on both current and mainly future situation.
• Household’s worries concern future economic situation, while willingness to buy large items remained high despite a relative small decrease in Jan.
• Government shutdown and turbulences in financial markets have negatively impacted household confidence.

Switzerland: PPI-import prices (Dec.): -0.6% m/m vs -0.1% expected (prior: -0.3%)

• Import prices have declined by 1.6% m/m and production prices were just down by 0.1% m/m:
• Yearly trend has moderated further from 1.4% y/y to 0.6% y/y for producer and import prices.

UK: Retail sales (Dec.): -0.9% m/m vs -0.8% expected (prior: 1.3% revised from 1.4%)

• Sales ex fuel were down by 1.3% m/m vs -0.8% m/m expected (1% the prior month); trend in internet sales remained positive.
• Downside risks are weighing on consumption as political scenario remains unclear.

Poland: Industrial production (Dec.): -11.5% m/m vs -9.6% expected (prior: -3.6%)

• Industrial activity has turned highly volatile over past quarter; trend in production has slowed down from 4.7% y/y the prior month to 2.8% y/y.

US: Initial jobless claims (Jan.12): 213k vs 220k expected (prior: 216k)

• Continuing claims: 1737 k after 1719 k past week.

US: Philadelphia Fed. (Jan.): 17 vs 9.5 expected (prior: 9.1 revised from 9.4)

• A stronger than expected rebound, after downward revision to past month.
• Current views and expectations have strongly rebounded from past month, recovering to levels seen in Q3-18.
• The current views have improved thanks to a rebound in new orders and a fall in inventories. Number of employees has decreased as well as prices (both received and paid).
• Expectations have rebounded thanks mainly to firmer shipments, higher employees and increasing workweek; new orders have moderated but remained at a high level.
• This index has rebounded after a regular fall in H2-18: this argues in favour of a mini cycle, with hope of some rebound in the future.

UK: RICS house price balance (Dec.): -19% vs -13% expected (prior: -11%)

• Opinions on house prices and sales have strongly deteriorated, and real sales stayed on a regular downward trend.

Eurozone: CPI (Dec.): 0% m/m as expected (prior: -0.2%)

• Inflation has stabilized despite lower energy prices during the month under review; trend has moderated from 1.9% y/y past month to 1.6% y/y.
• Core inflation was up by 0.5% m/m and then was stable at 1%; services were up by 0.9% m/m an up by 1.3% y/y.

US: Import price index (Dec.): -1% m/m vs -1.3% expected (prior: -1.9% revised from -1.6%)

• Ex energy, prices were up by 0.3% m/m (-0.3% m/m the prior month); yearly trend has moderated from 0.5% y/y to -0.6% y/y.
• Export prices were also down by 0.6% m/m, and have moderated from 1.8% y/y to 1.1% y/y.

US: NAHB housing market index (Jan.): 58 vs 56 expected (prior: 56)

• Sentiment in housing has rebounded on higher present and future sales after interest rates have moderated.

UK: CPI (Dec.): 0.2% m/m as expected (prior: 0.2%)

• Prices of food, transport and household goods have accelerated, while those of clothes decreased over the month.
• Yearly trend has declined from 2.3% y/y past month to 2.1% y/y; core inflation has slightly increased from 1.8% y/y to 1.9% y/y.
• Less pressure on BoE from inflation, but still concerns from tight labor and uncertain political environment.

UK: PPI Input prices (Dec.): -1% m/m vs -1.4% expected (prior: -2.6% revised from -2.3%)

• Yearly trend has moderated further from 5.3% y/y to 3.7% y/y.
• A large fall in energy prices and some contraction in chemical while other prices have slightly increased.

UK: PPI Output prices (Dec.): -0.3% m/m vs 0% expected (prior: 0.1% revised from 0.2%)

• Core PPI were up by 0.2% m/m; yearly trend has moderated from 3% y/y to 2.5% y/y, while core prices have increased from 2.4% y/y to 2.5% y/y.

Germany: CPI (Dec.): 0.3% m/m as expected (prior: 0.1%)

• Inflation has been confirmed lower due to declining oil prices and for clothes. Core inflation was up by 0.1%m/m after 0% m/m.
• Trend has moderated from 2.3% y/y to 1.7% y/y. Core inflation was slightly down from 1.5% y/y to 1.4% y/y.

Italy: Industrial orders (Dec.): -2% m/m (prior: 1.8% revised from 2%)

• While foreign orders stayed positive (+1.4% m/m), domestic orders have drastically fallen (-4.4% m/m), due to transport and pharma.
• Industrial sales were up by 0.6% m/m (after 2% m/m prior month), driven by foreign sales.

US: Empire manufacturing (Jan.): 3.9 vs 10 expected (prior: 11.5 revised from 10.9)

• Sentiment has declined further after the fall seen the prior month (index slightly revised up).
• On current and future views, the fall was driven by lower new orders, shipment and also lower employment.
• The index was back to the mid-2017 and 2015 levels, pointing towards a renewed mini cycle (the slowdown part) in industry.

US: PPI (Dec.): -0.2% m/m vs -0.1% expected (prior: 0.1%)

• Lower energy prices and lower trade services have driven the changes on PPIs.
• The yearly trend stayed stable at 2.5% y/y; core PPIs were flat over the month and also stayed stable on a yearly basis (2.8% y/y).
• These data should help the Fed to be patient.

Sweden: Retail sales (Nov.): -0.5% m/m (prior: 0.2% revised from -0.2%)

• The yearly trend for consumption has contracted by -0.5% y/y after 1.5% y/y in past month.

France: CPI (Dec.): 0.1% m/m as expected (prior: -0.2%)

• Inflation has been confirmed back below 2% y/y, at 1.9% y/y, on lower energy prices.

Germany: GDP YoY (2018): 1.5% y/y as expected (prior: 2.2%)

• First GDP estimate for the whole year has pointed towards a marked slowdown from above 2% growth in 2017.
• Implicitly growth in Q4 (official number to be released by 14th Feb.) was mildly positive (around 0.2% q/q) based on preliminary data.
• By sector, export performances and consumption have slowed down significantly in 2018, while investment stayed more dynamic. 2019 growth outlook is around 1.5%, with still downside risks in place notably on Q119.

Spain: CPI (Dec.): -0.5% m/m as expected (prior: -0.2%)

• Inflation has been confirmed on a lower trend thanks to falling energy prices. The yearly trend has moderated from 1.7% y/y to 1.2% y/y.

Poland: CPI (Dec.): 0% m/m as expected (prior: 0%)

• As estimated, inflation trend has moderated from 1.3% y/y to 1.1% y/y; Prices of energy and of clothes have both declined on a monthly basis.

Brazil: Retail sales (Nov.): 2.9% m/m vs 1% expected (prior: -1.1% revised from -0.4%)

• Sales have rebounded more than expected after downward revisions to past month data. Purchases of furniture, household goods have strongly rebounded after the election.

Turkey: Unemployment rate (Oct.): 11.6% vs 11.4% expected (prior: 11.4%)

• The unemployment ratio stayed on a rising trend for several months.