Manufacturing in US continues to expand
US industrial production in July forged ahead by 0.6 per cent. A Bloomberg New survey of economists had forecast a 0.5 per cent increase. This comes on the heels of a revised 0.1 per cent expansion in June that was smaller than previously...
US industrial production in July forged ahead by 0.6 per cent. A Bloomberg New survey of economists had forecast a 0.5 per cent increase. This comes on the heels of a revised 0.1 per cent expansion in June that was smaller than previously reported.
Manufacturing, which comprises about 75 per cent of total production, rose 0.5 per cent for a second month.
The industrial production index measures the output from the manufacturing, mining, electric and gas industries.
After remaining flat in the first quarter of this year, eurozone GDP shrank 0.2 per cent in the year’s second quarter compared to the first, according to data released by Eurostat.
The wider 27-member EU registered a similar decline.
On the other hand, German GDP grew 0.3 per cent from the first quarter, when it gained 0.5 per cent. According to a Bloomberg News survey, economists had predicted German growth of 0.2 per cent.
French GDP was unchanged in the second quarter, better than the expected -0.1 per cent contraction.
Italy and Spain, Europe’s third and fourth largest economies respectively, continued to be mired in recession, with Italy shrinking by 0.7 per cent for a fourth straight quarter of GDP decline.
In Spain, GDP shrank 0.4 per cent from the previous quarter, when its decline was 0.3 per cent.
Europe’s economy has so far been kept afloat by its two largest economies, which avoided the turmoil in the first half of the year. However, the debt crisis is starting to take its toll by eroding demand for their exports.
Finally, increases in airfare prices and the unwinding of sales on clothing items, propelled the UK inflation rate in July. This accelerated for the first time in four months, as consumer prices increased 2.6 per cent from the same period last year.
Economists surveyed by a Bloomberg News survey were expecting a 2.3 per cent increase. Consumer prices had risen 2.4 per cent the previous month.
This article was compiled by Bank of Valletta for general information purposes only.