EU-16 retail sales shrink faster
In the 16-member Eurozone, retail sales shrank by 0.6% in February, the fastest rate since May 2009, after falling 0.2% in January. The second revision of GDP for the fourth quarter of 2009 was revised down to flat from a previously reported 0.1% growth.
In the 16-member Eurozone, retail sales shrank by 0.6% in February, the fastest rate since May 2009, after falling 0.2% in January. The second revision of GDP for the fourth quarter of 2009 was revised down to flat from a previously reported 0.1% growth. On Thursday, the European Central Bank left its benchmark interest rate at a record low of 1% in line with economists' predictions.
The Purchasing Managers' (PMI) composite index was revised upwards to 55.9 in March from 53.7 in February, and above the 55.5 initially published. The manufacturing PMI for March was also revised to 56.6 from 54.2 in February, also beating an earlier preliminary estimate of 56.3. The services PMI was revised to 54.1 in March from 53.7 two weeks earlier, and up from 51.8 in February.
In the UK, the Bank of England, also kept its interest rate unchanged at a record low of 0.5% for the 13th consecutive month and made no increase to its £200 billion asset-buying scheme to support the economy.
The headline manufacturing PMI rose to 57.2 in March from 56.6 in February. Activity in the dominant services sector in March rose less than expected to 56.5, well below February's three-year-high at 58.4. UK industrial output rose twice as fast as expected in February as production rose 1% on the month, up from its -0.5% drop in January.
In the housing market, the number of house purchase approvals fell back slightly to 47,000 in February. According to Halifax building society, house prices rose 1.1% in March, against an expected 0.5% increase, and a marked rebound from the -1.6% a month earlier.
In the US, non-farm payrolls increased by 162,000 during March after a revised 14,000 decline in February. Interestingly, manufacturing payrolls rose by 17,000 jobs in the same month compared to a 6,000 increase in February. However, unemployment held steady at 9.7% in March, since discouraged workers returned to the labour force to look for jobs.
The Institute for Supply Management non-manufacturing index also recorded an increase for the third consecutive month to 55.4 in March, from 53 the previous month. The Conference Board's confidence index increased to 52.5 in March from 46.4 the previous month.
This article has been prepared by Bank of Valletta plc, which is licensed to conduct investment services business by the MFSA, for your general information only.