Analysts at Standard Chartered says that China’s growth fell short of market expectations in May as industrial production growth decelerated to 5% y/y from 5.4% in April, compared to market forecast of 5.4%.
The Commerce
Department reported on Friday that business inventories rose 0.5 percent m-o-m
in April, following an unrevised flat m-o-m performance in March.
That was in
line with economists’ forecast.
According to
the report, inventories at wholesalers surged by0.8 percent m-o-m in April,
while stocks at retailers and manufacturers rose by a respective 0.5 percent
m-o-m and 0.3 percent m-o-m.
Retail
inventories excluding autos, which go into the calculation of GDP, increased
0.4 percent m-o-m, after being flat m-o-m in the prior month.
A report from
the University of Michigan revealed on Friday the preliminary reading for the
Reuters/Michigan index of consumer sentiment fell to 97.9 in early June.
Economists had
expected the index would decrease to 98.0 this month from May’s final reading
of 100
In early June, consumer
sentiment reversed the May gain due to tariffs as well as slowing gains in
employment, the report said. Some of the decline was due to expected tariffs on
Mexican imports, which may be reversed in late June, but most of the concern
was with the 25% tariffs on nearly half of all Chinese imports. Consumers
responded by lowering growth prospects for the national economy, and as a
consequence, reduced the expected gains in employment.
According to
the report, the index of current U.S. economic conditions rose to 112.5 in June
from 110.0 in the previous month. Meanwhile, the index of consumer expectations
fell to 88.6 this month from 93.5 in March.
James Knightley, the Chief International Economist at ING, notes that a rebound in utility output has helped lift U.S. industrial production while manufacturing output has risen for the first time in five months thanks to car production.
The Federal
Reserve reported on Friday that the U.S. industrial production jumped 0.4
percent m-o-m in May, following a revised 0.4 percent m-o-m decrease in April (originally
a 0.5 percent m-o-m drop). That was the biggest gain in industrial production
since November 2018.
Economists had
forecast industrial production would increase 0.2 percent m-o-m in May.
According to
the report, the index for utilities climbed 2.1 percent m-o-m in May, while the
indexes for manufacturing and mining gained 0.2 percent m-o-m and 0.1 percent
m-o-m, respectively.
Capacity
utilization for the industrial sector increased 0.2 percentage point m-o-m in May
to 78.1 percent. That was 0.1 percentage point above economists’ forecast but
1.7 percentage points below its long-run (1972–2018) average.
In y-o-y terms,
the industrial output rose 2.0 percent in May, following an unrevised 0.9
percent advance in the prior month.
U.S. stock-index futures fell on Friday, as investor sentiment was weighed down by a drop in semiconductor shares alongside weak data out of China.
Global Stocks:
Index/commodity | Last | Today's Change, points | Today's Change, % |
Nikkei | 21,116.89 | +84.89 | +0.40% |
Hang Seng | 27,118.35 | -176.36 | -0.65% |
Shanghai | 2,881.97 | -28.77 | -0.99% |
S&P/ASX | 6,554.00 | +11.60 | +0.18% |
FTSE | 7,329.75 | -38.82 | -0.53% |
CAC | 5,356.99 | -18.64 | -0.35% |
DAX | 12,086.86 | -82.19 | -0.68% |
Crude oil | $52.19 | -0.17% | |
Gold | $1,355.10 | +0.85% |
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