This page has been updated with additional analysis since first publication. Labour market strength fading rapidly The 187,000 gain in non-farm payrolls, jump in the unemployment rate and slowdown in wage growth in August all add to the evidence that …
1st September 2023
This page has been updated with additional analysis since first publication . A strong H1, but slower growth ahead The much faster-than-expected Brazilian Q2 GDP growth figure of 0.9% q/q suggests that the economy is in stronger health than many – …
This page has been updated with additional analysis since first publication . PMI overall improves but still points to weak growth South Africa’s manufacturing PMI strengthened in August, reversing the declines seen in recent months as loadshedding became …
This page has been updated with additional analysis since first publication. Weak PMIs in CEE, but further evidence of Russia overheating The manufacturing PMIs for August suggest that industrial sectors in Poland, Czechia and Turkey remained in the …
This publication has been updated with additional analysis. Inflation unchanged, set to stay below 2% Switzerland’s headline inflation rate was unchanged in August as a fall in core inflation was offset by the impact of rising fuel prices. This is the …
The start of a new leg down in prices The large monthly fall in house prices in August confirmed that the further leg down in house prices that we have been forecasting has begun to materialise. With mortgage rates likely to remain around current levels …
This page has been updated with additional analysis since first publication. Manufacturing PMI defying gravity, again India’s manufacturing PMI is again defying gravity, recording one of its highest readings in the past 13 years in August. It’s clear that …
Consumption boosted by heatwave Real consumption increased by a bigger than expected 0.6% m/m in July, which will result in another round of upward revisions to third-quarter GDP growth. Our own forecast is now up to 2.3%. But the strength in July is …
31st August 2023
This page has been updated with additional analysis since first publication. Resilient economy likely to cool a touch The GDP data for Q2 (Q1 of FY23/24) confirm a resilient first half of the year for India’s economy in the face of the RBI’s policy …
This page has been updated with additional analysis since first publication. September rate decision hangs in the balance The small upside surprise to euro-zone headline inflation in August was entirely due to energy, while the core rate edged down. We …
Double-digit inflation will prevent September rate cut The fact that Polish inflation remained in double-digits in August, at 10.1% y/y, means that an interest rate cut at the central bank’s meeting next week now seems very unlikely. That said, we think …
This page has been updated with additional analysis since first publication . Rapid Q2 growth likely to trigger another large rate hike The bumper Turkish Q2 GDP growth figure of 3.5% q/q, taken together with more timely figures for Q3 confirms that …
This page has been updated with additional analysis since first publication. Resilience of business investment poses upside risks to growth We don’t think the ongoing strength in private fixed investment will last. However, the balance of risks to our …
Note: We’ll be discussing the China growth/stimulus question, the BOJ’s policy outlook, Indian food price inflation and more in our monthly Asia Drop-In on Thursday, 31 st August . Register here to join the online briefing. This page has been updated with …
This page has been updated with additional analysis since first published. Signs of softening activity at the start of Q3 The latest activity data for Russia for July suggest that retail sales maintained solid momentum while industry has come off the boil …
30th August 2023
Seattle sees record decline in information jobs in July Employment growth in July was near the average seen in 2023 thus far, at a seasonally-adjusted 0.5% 3m/3m across the 30 metros we cover. But the disappointing performance of information jobs …
Big gap between GDP and GDI persists Second-quarter GDP growth was revised down marginally to a still-healthy 2.1% annualised from 2.4%, but the alternative GDI (gross domestic income) measure suggests the economy expanded at a much slower 0.5% annualised …
Inflation still stubbornly high August’s slightly higher-than-expected inflation rates in Germany and Spain mean euro-zone HICP inflation may not fall as far as we had anticipated (data due tomorrow) and marginally raise the chance of another rate hike in …
This page has been updated with additional analysis since first publication. Sentiment rebounds, nascent recovery may be underway The European Commission's Economic Sentiment Indicators for Central and Eastern Europe (CEE) generally rose in August and …
Renewed surge in mortgage rates begins to take its toll The decline in mortgage approvals to a five-month low in July showed the renewed surge in mortgage rates since April has begun to take its toll. But given the lag between quoted mortgage rates and …
Net lending to commercial property was positive for the fifth consecutive month in July although, at £297m, the increase was the smallest since lending contracted in February. Both standing and development lending fell back, with the latter contracting by …
This page has been updated with additional analysis since first publication. Euro-zone sentiment weakens further The decline in the euro-zone’s Economic Sentiment Indicator (ESI) in August leaves it consistent on past form with GDP stagnating at best in …
This page has been updated with additional analysis since first publication. Higher interest rates are weighing more heavily on lending The drag on bank lending from higher interest rates grew further in July, particularly in the housing market. We think …
This page has been updated with additional analysis since first publication. Rapid fall in inflation may prompt earlier rate cuts The sharp fall in inflation in July confirms that the RBA is done tightening and raises the chances that the Bank will start …
June saw house prices rise again for the fifth month in a row The limited supply of existing homes for sale helped house prices rise for the fifth consecutive month in June, according to Case-Shiller. Given the sizeable increase in prices in Q2 and that …
29th August 2023
This page has been updated with additional analysis since first publication. MNB cuts rates again, but a short pause in the easing cycle may be coming The Hungarian central bank (MNB) announced another 100bp cut to its quick deposit rate (the key policy …
This page has been updated with additional analysis since first publication. RBA will look past upswing in retail sales We don’t believe that the healthy uptick in retail sales in July represents a second wind for the Australian consumer. Accordingly, …
28th August 2023
Solid growth not yet prompting Fed rethink Fed Chair Jerome Powell underscored the FOMC’s commitment to data dependence in his Jackson Hole speech today, but there was no suggestion that signs of economic resilience have already prompted Fed officials to …
25th August 2023
This webpage has been updated with additional analysis, as well as a Chart and Table of key data. Growth pick up is likely to be short-lived Nigeria’s economic growth picked up to 2.5% y/y in Q2 as the damaging effects of a botched demonetisation process …
This page has been updated with additional analysis since first publication . Inflation rise likely to take larger rate cuts off the table The jump in Brazilian inflation to a higher-than-expected 4.2% y/y in the middle of the month (and the prospect of …
This page has been updated with additional analysis since first publication. German economy set to contract again in third quarter The fourth successive monthly decline in the Ifo Business Climate Index in August, following the slump in the PMIs earlier …
This page has been updated with additional analysis since first publication. Underlying inflation losing momentum While underlying inflation remained at a 40-year high in the August Tokyo CPI, the momentum of price increases has slowed markedly which …
Equipment investment set to stagnate The 5.2% m/m fall in durable goods orders mainly reflected a reversal of the earlier jump in aircraft orders and wasn’t actually as bad as we had expected, with core orders also surprising on the upside. But the …
24th August 2023
This page has been updated with additional analysis since first publication. Sticky services inflation to keep Banxico on the sidelines for now Mexico’s headline inflation rate declined further in the first half of August, but sticky services inflation …
CBRT delivers a shock interest rate hike The Turkish central bank’s much larger-than-expected 750bp interest rate hike, to 25.00%, at today’s meeting will go a long way towards reassuring investors that the shift back to policy orthodoxy is on track. The …
Bank Indonesia (BI) today left its main policy rate unchanged (5.75%) but with inflation set to remain well within target and the economy weak, we expect BI to cut interest rates before the end of 2023. Today’s decision came as no surprise and was …
On hold again but rate cuts likely in the coming months The decision today by the Bank of Korea to leave the policy rate unchanged (at 3.5%) for a fifth consecutive meeting came as no surprise. The central bank is due to hold a press conference and …
Limited existing home supply supports new sales New home sales rose by 4.4% m/m in July, reaching 714,000 annualised. Despite a slight fall in June, new home sales have seen sustained strength over the last year, with July’s increase leaving them over 30% …
23rd August 2023
Survey consistent with economic stagnation The slump in the S&P Global composite PMI to a six-month low in August casts further doubt on the idea that the economy is accelerating, with the index consistent on past form with GDP growth of close to zero. …
Retail sales still struggling as higher interest rates feed through Retail sales volumes broadly stagnated over June and July and would have performed much worse were it not for the improving supply of motor vehicles. While the ongoing wildfires across …
This page has been updated with additional analysis since first publication. Higher interest rates dragging the economy into recession The fall in the activity PMI to below the boom-bust level of 50.0 in August supports our long-held view that the economy …
This page has been updated with additional analysis since first publication. Germany leading euro-zone into recession August’s flash PMIs were worse than expected, particularly in Germany, and are consistent with our view that the euro-zone economy will …
Further fall in inflation takes additional rate hikes off the table The larger-than-expected fall in South Africa’s headline inflation rate to 4.7% y/y in July leaves it within touching distance of the mid-point of the Reserve Bank’s 3-6% target range and …
This page has been updated with additional analysis since first publication. Inflationary pressures in Singapore eased in July but despite the good news on inflation we now think the central bank will keep policy on hold at its October meeting. Higher …
This page has been updated with additional analysis since first publication. PMIs point to continued strength in economic activity The composite PMI remained high in August which points to continued strength in GDP growth, but a slowdown from the bumper …
This page has been updated with additional analysis since first publication. Economy lacked momentum in July Poland’s industrial production and retail sales figures for July came in weaker than expected and suggest that the downturn in the economy …
22nd August 2023
This page has been updated with additional analysis since first publication. Limited scope for pre-election splurge despite borrowing undershoot July’s public finances figures continued the recent run of better-than-expected news on the fiscal position. …
This page has been updated with additional analysis since first publication. Economic growth slowed sharply in Thailand during Q2 and we are revising down our full-year GDP forecast for 2023. With inflation likely to remain low and the economic recovery …
21st August 2023
This page has been updated with additional analysis since first publication . Fall in GDP will sustain central bank’s dovish turn Chile’s GDP contracted by a shallower-than-expected 0.3% q/q in Q2, but the fall in output alongside downwards revisions to …
18th August 2023
