It rose to 77.8% in July from 77.5% in June, still below levels seen last spring. In terms of utilization, hot temperatures might have caused utilities to raise their output, but the manufacturing component of utilization is more relevant to the long-term economic picture. ET tomorrow and analysts expect a pullback in production growth to 0.2% from July’s 1%, according to consensus. Industrial Production and Capacity Utilization for August is due at 8:30 a.m. Still, several reports could be worth a glance prior to heading out for the weekend. What to watchĭata tomorrow can’t compete with the inflation and Retail Sales that captured attention yesterday and today. This is another stimulus measure that follows several other steps the Chinese government has taken in the last few months to boost its economy. However, the ECB indicated in its statement that it may be done raising rates: “Key ECB interest rates have reached levels that, maintained for a sufficiently long duration, will make a substantial contribution to the timely return of inflation to the target.”Ĭhina’s central bank was also active today, announcing that the reserve requirement for banks will drop by 25 basis points tomorrow. Those are upward revisions to its previous estimates, mainly due to higher energy prices. The ECB predicts 5.6% Eurozone inflation this year followed by 3.2% in 2024. In its statement, the ECB said that though inflation is falling, it still expected it to remain too high for too long. But today the ECB increased rates by 25 basis points, making it the 10th consecutive rate hike. Initial unemployment claims for the most recent week came in at 220,000, below expectations but slightly above last week’s seven-month low.Įarlier this week, analysts expected the European Central Bank (ECB) to pause rate hikes. This figure plays into the government’s Gross Domestic Product (GDP) calculation. In one sign of possible weakness, however, a “control group” that excludes auto sales, food services, gas, and building materials saw sales rise just 0.1% in August. The increase was also 0.6% with autos not included. Today’s Retail Sales data came in firmer than expected with a 0.6% rise, following a downwardly revised 0.5% increase in July. Still, chances of a November increase in rates remain below 40%, futures trading suggests. The higher-than-expected headline PPI number might play into expectations for the Fed’s November meeting, though so far there’s no sign of headline inflation leaking into the core rate.
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