US housing starts on record highs
US: Housing starts (Oct.): 1530k vs 1460k expected (prior: 1459k revised from 1415k)
- Building permits: 1545 k vs 1567 k expected; 1545 k prior month.
- Housing starts have increased further, particularly for single family houses and data were back to the 2019 highs. Building permits for single family houses have increased in parallel, while total permits stayed below expectations.
- Despite some losing momentum in several sectors (retail sales, consumer confidence, regional business confidence) demand for housing remained strong especially for houses outside cities, benefiting from still low interest rates and a remaining healthy labour.
UK: CPI (Oct.): 0% m/m vs -0.1% expected (prior: 0.4%)
- While prices of clothes and education were on the rise over the month, prices for energy, housing and health have declined on a monthly basis.
- Yearly trend in headline inflation has accelerated from 0.5% y/y the prior month to 0.7% y/y. Core inflation has also gained further, from 1.3% y/y to 1.5% y/y. Despite these trends, inflation remained well below target, and BoE's communication this week has pointed towards further accommodation if necessary.
UK: PPI Input prices (Oct.): 0.2% m/m vs 0% expected (prior: 0.3% revised from 1.1%)
- Prices were on a less negative trend, from -2.2% y/y the prior month to -1.3% y/y.
UK: PPI Output prices (Oct.): 0% m/m vs 0.1% expected (prior: -0.1%)
- Energy prices were down over the month.
- Yearly trend has turned less negative from -1.6% y/y the prior month to -1.3% y/y.
Eurozone: CPI (Oct.): 0.2% m/m as expected (prior: 0.1%)
- Core inflation was up by 0.1 % m/m; over the month, the rises in food and energy prices have been balanced by decreasing service prices.
- Yearly trend remained stable, down by 0.3% y/y.