US non-farm payrolls miss expectations by 20,000 in Obama’s final jobs numbers January 6, 2017 The number of jobs added in the US missed expectations in December, although the run of relatively solid economic data continued ahead of the Federal Reserve’s next meeting to decide monetary policy in February. The final non-farm payroll data under President Barack Obama showed an increase of 156,000 jobs in the month, after rising by [...]
UK businesses and consumers see rosy economic prospects peak at the end of 2016, as confidence in Europe rises January 6, 2017 UK business confidence in the economy’s prospects increased to a 2016 high in December as Eurozone companies also saw a strong improvement in trading conditions, according to the European Commission. The buoyant services sector drove UK economic sentiment to an increase of 1.3 per cent, reflecting recent news of a rise in the services purchasing [...]
Productivity puzzle remains for economists despite UK growth in third quarter of 2016 January 6, 2017 The UK is still struggling to increase the amount it increases per worker as economists wrestle with a continued “productivity puzzle”, new official data shows. Labour productivity, measured by the amount the UK produced per hour, grew by only 0.4 per cent in the third quarter of 2016, representing a flat rate of growth, according [...]
Donald Trump reflation story continues to enthral investors as money market fund flows increase January 6, 2017 Investors have rushed to put money into money market funds, as they continue to back the story that inflation is going to grow under US President-elect Donald Trump. Fund flows into money market funds in the week ending 4 January grew to $31.7bn (£25.7bn), up from $16bn in the week including the Christmas holiday, according [...]
Renminbi continues two-day rally as China’s government steps in to limit capital outflows January 5, 2017 China’s currency continued its sharp two-day rally on Thursday as investors react to the prospect of tighter government controls on capital outflows announced at the end of last year. China’s renminbi has sharply jumped off lows approaching Rmb7 to the dollar as traders and businesses rush to secure the currency outside of the country. Renminbi has [...]
The US services sector ended 2016 on a strong note, confirms the purchasing managers’ index January 5, 2017 The US services sector expanded in December at the same rate as November, continuing healthy growth in the month before Donald Trump becomes US President, according to an important indicator of economic activity. The non-manufacturing purchasing managers’ index (PMI) stayed flat at 57.2, indicating a continued expansion in the sector for the 83rd month in [...]
Bank of England chief economist Andy Haldane says they were wrong on Brexit, but UK must factor in financial services in negotiations January 5, 2017 The Bank of England's top economist has said the financial services sector should be one of the top concerns for the government in the upcoming Brexit negotiations, while acknowledging that the Bank's predictions on the effects of a vote to leave the EU were badly wrong – a "Michael Fish moment". Andy Haldane, chief economist of [...]
Eurozone producer prices rise for the first time since June 2013, although ECB may be left in a quandary January 5, 2017 Producer prices in the Eurozone increased for the first time in over three years, as inflation finally starts to take hold. The annual rate of producer price inflation rose to 0.1 per cent in November, breaking a trend which had been in place since June 2013. Energy price rises of 0.7 per cent were the [...]
The dominant UK services sector reaches 17-month high in December as domestic demand increases strongly January 5, 2017 Economic activity in the UK’s dominant services sector ended 2016 on strong form to reach a 17-month high, according to an important indicator. The services purchasing managers’ index (PMI) rose beyond expectations for the third month in a row to 56.2 compared to a 55.2 reading the month before, according to IHS Markit. This is [...]
Increased turnover growth in sights for British companies – but inflation looms January 5, 2017 British business expectations of turnover growth have increased after a post-referendum dip, according to a new survey of more than 7,000 firms – although predictions of price rises have also risen sharply. Confidence in increased earnings increased at the end of the fourth quarter by seven percentage points to hit a net positive rating of [...]
