Some Upside Surprises in the Global Economy - Wells Fargo
U.S. Review
Economic Data Better Than Expected
- Economic data largely beat consensus expectations over the past week, with positive signs from the factory sector and homebuilding.
- Industrial production rose for the first time in three months on the back of solid gains in utilities and manufacturing. Housing starts also rebounded, setting the stage for further improvement moving into the important summer months.
- Consumer price inflation rose sharply on the back of higher energy prices. Core inflation also ticked up, however, as inflation continues to firm.
Global Review
Some Upside Surprises in the Global Economy
- In a year that has thus far been characterized by a deteriorating outlook for the global economy, this week brought a few indicators that surprised on the upside.
- Japan posted an annualized growth rate of 1.7 percent which comfortably surpassed the 0.3 percent growth rate expected by the consensus.
- Consumers in the United Kingdom do not appear to be overly concerned about Brexit. U.K. retail sales shot up 1.3 percent on the month, more than double the expected gain.
- The Canadian CPI climbed closer to the BoC’s target.
