10 Things You Need To Know: December 6, 2022
Key data releases this week include: factory orders (Mon), ISM Services (Mon), consumer credit (Wed), PPI (Thu), and consumer sentiment (Fri).
Bloomberg
December 5, 2022
Growth at US service providers unexpectedly accelerated in November as a measure of business activity jumped by the most since March 2021, suggesting the largest part of the economy remains resilient. The Institute for Supply Management’s gauge of services rose to 56.5 last month from 54.4 in October, according to data released Monday.
Haver
November 29, 2022
U.S. house prices ticked up 0.1% m/m in September after unrevised drops of 0.7% in August and 0.6% in July, according to the Federal Housing Finance Agency (FHFA) House Price Index. The September reading was the first monthly increase since June’s 0.1%. The year-on-year rate of increase eased to 11.0% in September, the smallest since October 2020.
Haver
November 30, 2022
The initially reported 2.6% q/q saar increase in U.S. real GDP was revised up to 2.9% in the second estimate. The Action Economics Forecast Survey had looked for a smaller upward revision to 2.7%. Real personal consumption expenditure growth was revised up to 1.7% from 1.4%. The largest contribution to Q3 GDP growth was still provided by net exports.
Haver
December 2, 2022
Nonfarm payrolls increased 263,000 in November following an increase of 284,000 in October and 269,000 in September, revised from 261,000 & 315,000, respectively. Expectations had been for a 195,000 rise in the Action Economics Forecast Survey. Average hourly earnings rose 0.6% last month after increasing 0.5% in October.
Capital Economics
December 5, 2022
The sharp drop in euro-zone retail spending in October is consistent with our view that – notwithstanding the slight uptick in some business surveys recently – the economy is entering recession. With households facing huge energy bills and rising interest rates, we expect spending to fall further over the winter.
Bloomberg
December 5, 2022
Chinese authorities eased Covid testing requirements across major cities over the weekend as Beijing appears to be engineering a gradual shift away from its strict Covid Zero policy amid elevated cases and public protests. The financial hub of Shanghai, which saw a grueling two- month lockdown earlier in the year, scrapped PCR testing requirements to enter all public venues except some like restaurants, bars and nursing homes, city authorities said.
Capital Economics
December 5, 2022
The global downturn will pull Japan into recession next year. And with government caps on utility bills pushing inflation below the Bank of Japan’s 2% target by mid-2023, the Bank will remain the outlier by keeping monetary policy loose.
Barron’s
December 5, 2022
The National Association of Realtors expects existing-home prices nationally to rise 1% in 2023, while Freddie Mac expects prices gauged by its housing market index to dip slightly. CoreLogic, a housing data provider, sees home-price gains slowing to 3.9% nationally by next September, according to its most recent home-price index report.
Bloomberg
December 5, 2022
The OPEC+ alliance decided to maintain production at current levels, pausing to take stock of a global oil market that’s roiled by uncertainty over Chinese demand and Russian supply. The 23-nation group, which held a roughly 20-minute online meeting, has only just started implementing the hefty 2 million barrel-a-day reduction agreed at its last gathering in October. The full impact of that cut is unclear amid severe gyrations in prices.