Archives of “Economy” category

rss

Newswires reporting China has set its 2021 GDP growth target at over 6%

  
Analysis, Economy

There has been plenty of discussion over whether or not China would set a target at all.

Citing info in the Hong Kong Economic Times

Here we go …. China’s Premier Li says >6% is the target for GDP this year

  • 3% is the CPI target for 2021
Li is speaking at the National People’s Congress, delivering the ‘Work Report’
No change to the working on fiscal and monetary policy
  • fiscal policy to be proactive
  • monetary policy to be prudent

China – Caixin/Markit Manufacturing PMI for February: 50.9 (expected 51.4, prior 51.5)

  
Analysis, Economy
Caixin/Markit is the private survey. At 50.9 its a 9 month low. In summary from the report:
  • slower rises in both output and new work for the third month running
  • New export work declined for the second month running
  • raw material shortages and transport delays led to a marked lengthening of suppliers’ delivery times
  • increase in production … growth eased to a ten-month low
  • employment falling modestly
  • little pressure on operating capacities, as backlogs of work fell for the first time since last May, albeit marginally
  • Greater prices for raw materials and higher transport costs led to a further substantial rise in input costs

Japan – Jibun Bank/Markit Manufacturing PMI (final) for February 51.4

  
Analysis, Economy

Japan Jibun Bank / Markit PMIs for February comes in at 51.4

  • preliminary for Manufacturing was 50.6
  • prior 49.8
From the report, in brief:
  • first improvement in operating conditions since April 2019
  • modest expansions in both output and new order inflows
  • supply chain disruption caused … input cost inflation rose to the fastest for two years
  • businesses remained optimistic that production would rise over the coming 12 months
  • Production volumes increased for the first time since December 2018
  • Firms cited a gradual recovery in demand
  • new orders expanded for the second successive month
  • new export sales increased for the first time in four months
  • employment levels continued to decrease

US weekly initial jobless claims 730k vs 825k expected

  
Analysis, Economy

Initial jobless claims for the week ending 20 February 2021

  • Prior 861k; revised to 841k
  • Continuing claims 4,419k vs 4,460k expected
  • Prior 4,494k; revised to 4,520k

The headline is lower than estimates and is also better than the previous week at least. The 4-week average for initial jobless claims fell to 807,750 in the week to 20 February from the prior week of 833,250.

That said, claims have sort of hit a floor and we’re seeing this relatively high figure week in, week out. So, there’s that to ponder if you are the Fed.

The largest increases in initial claims were in Illinois (+28,110), Ohio (+6,563), Idaho (+4,764), Kansas (+1,744), and California (+1,664).
Meanwhile, the largest decreases were in Maryland (-9,835), Rhode Island (-6,129), Georgia (-5,854), New Jersey (-4,630), and Texas (-4,234).

Eurozone January final core CPI +1.4% vs +1.4% y/y prelim

  
Analysis, Economy

Latest data released by Eurostat – 23 February 2021

  • CPI +0.9% vs +0.9% y/y prelim
The preliminary report can be found here. No change to initial estimates as this reaffirms a bounce in inflation figures to start the year.
That said, it needs to be put into context as the German VAT changes and CO2 tax introduction has played a key role in inflating the numbers to start the new year.
Go to top