13 Jan 2014
Flash: More softness from US to follow? - BBH
FXstreet.com (Guatemala) - We have seen an abysmal set of Non Farm Payrolls data from the US, separately, analysts at Brown Brothers Harriman noted that the US real sector data, like retail sales, industrial production, and housing starts, risk being on the soft side.
Key Quotes:
“These reports, like the jobs data, suggest that even if Q4 GDP is in the 2.50%-2.75% range, the quarter ended with poor momentum (and this was before the polar vortex)”.
“We already know that auto sales were poor and weakness in brick-and-mortar sales may be partly blunted by growing internet commerce. It is notable that household consumption is steady and this is with limited new credit card usage”.
“The employment data and weather suggest some weakness in industrial production, though maybe mitigated by greater utility output. The outsized 22.7% jump in November housing starts and the weather factor highlights the downside risk to the December report”.
Key Quotes:
“These reports, like the jobs data, suggest that even if Q4 GDP is in the 2.50%-2.75% range, the quarter ended with poor momentum (and this was before the polar vortex)”.
“We already know that auto sales were poor and weakness in brick-and-mortar sales may be partly blunted by growing internet commerce. It is notable that household consumption is steady and this is with limited new credit card usage”.
“The employment data and weather suggest some weakness in industrial production, though maybe mitigated by greater utility output. The outsized 22.7% jump in November housing starts and the weather factor highlights the downside risk to the December report”.