The latest economic indicators
In China, rising Covid-19 infections have caused a huge drop in the purchasing managers’ index for the services sector (from 46.7 to 41.6). In manufacturing, there was a limited decline. In the Eurozone, labour costs in the third quarter increased 2.9%, which was less than in the previous quarter (4.0%). Consumer confidence improved somewhat. In Germany, the IFO business climate rebounded more than expected. Consumer confidence improved as well. In the US, the NAHB housing market index declined, whereas the consensus had expected a slight improvement. Housing starts were down marginally in November but building permits recorded a huge drop. The Conference Board consumer confidence index jumped in December. The assessment of the present situation and expectations about the outlook were both significantly up. Third quarter GDP growth was revised upwards to 3.2%. The Conference Board index of leading indicators continued its decline in November. The drop was bigger than expected. In November, growth of personal income slowed. The slowdown was even bigger for personal spending. University of Michigan sentiment improved in December. Short-run inflation expectations declined to 4.4% but longer-run expectations edged higher to 3.0%.
