FXstreet.com: Fundamental: Reports on Economic Indicators
FXstreet.com: Reports on Economic Indicators. Economic Indicators explained. A resource to understand how big institutions handle the various economic informations.

Industrial production fell by 2.9% m/m in December 2011 after remaining unchanged the previous month. Output fell in all sectors, but it sharply dropped in construction sector. Manufacturing production also fell by 2.7% m/m (after -0.3% m/m in November). All in all, manufacturing production dropped by 2.3% q/q in Q4 2011. However the development in manufacturing orders (-1.4% q/q in Q4 2011, after -3.7% q/q in Q3 2011) suggests a less unfavourable development of manufacturing activity at the

FXstreet.com: Fundamental: Reports on Economic Indicators
FXstreet.com: Reports on Economic Indicators. Economic Indicators explained. A resource to understand how big institutions handle the various economic informations.

Both the coincident and the leading indicator strengthened in December. This is mainly related to the ending of the flooding in Thailand. We expect industrial activity to remain more or less flat in the coming months. Both the coincident and the leading indicator strengthened in December by 2.9 points and 0.6 point, respectively. According to the Cabinet Office, the gain of the coincident indicator signals a possible turning point. By contrast, the lagging indicator inched down by 0.3 point.

FXstreet.com: Fundamental: Reports on Economic Indicators
FXstreet.com: Reports on Economic Indicators. Economic Indicators explained. A resource to understand how big institutions handle the various economic informations.

FXstreet.com: Fundamental: Reports on Economic Indicators
FXstreet.com: Reports on Economic Indicators. Economic Indicators explained. A resource to understand how big institutions handle the various economic informations.

Nonfarm payroll growth accelerated for the third consecutive month, up 243K in January following a upward revision of 60K combined for November and December The unemployment rate fell to 8.3% but was likely influenced by a drop in the participation rate Nonfarm payroll growth beat consensus expectations in January, jumping 243K following upward revisions to both November (from 100K to 157K) and December (from 200K to 203K). Gains were led primarily by a 257K rise in private sector hiring, with

FXstreet.com: Fundamental: Reports on Economic Indicators
FXstreet.com: Reports on Economic Indicators. Economic Indicators explained. A resource to understand how big institutions handle the various economic informations.

Factory orders increased for the second consecutive month, at 1.1 percent, after posting an upwardly revised 2.2 percent gain in November. This adds to the positive news on the state of the U.S. manufacturing sector. New Orders Slowed Down in December The pace of growth in new orders slowed a bit in December, growing by 1.1 percent after an upwardly revised 2.2 percent gain in November. Excluding transportation, new orders increased by 0.6 percent, higher than the 0.5 percent increase in

FXstreet.com: Fundamental: Reports on Economic Indicators
FXstreet.com: Reports on Economic Indicators. Economic Indicators explained. A resource to understand how big institutions handle the various economic informations.

The ISM non-manufacturing index climbed 3.8 points to 56.8, the strongest reading for service sector sentiment in almost a year and firmly in line with a view towards economic expansion. More Good News for Jobs On the heels of a better-than-expected print for nonfarm payrolls, today’s ISM non-manufacturing survey lifts expectations for further job gains in the coming months. Indeed, the employment component soared to 57.4—the highest level in almost six years. In a typical month, the ISM

FXstreet.com: Fundamental: Reports on Economic Indicators
FXstreet.com: Reports on Economic Indicators. Economic Indicators explained. A resource to understand how big institutions handle the various economic informations.

Nonfarm employment rose by 243,000 in January, as hiring gains continued in professional services, construction and manufacturing. Hours worked improved and suggests continued economic expansion. Solid Job Gains—A Story of Economic Expansion January’s increase of 243,000 in nonfarm jobs continued the string of monthly job gains in many sectors as evidenced by the positive turns in all three super sectors shown in the top graph. Consistent monthly gains have been evident in business services,

FXstreet.com: Fundamental: Reports on Economic Indicators
FXstreet.com: Reports on Economic Indicators. Economic Indicators explained. A resource to understand how big institutions handle the various economic informations.

Private payroll employment expanded 257,000 in January, the best showing in nine months. This figure was all the more impressive as it came on the heels of a 220,000 gain in December. Recent hiring trends have been particularly beneficial to industries where men figure more predominately. As today’s Hot Chart shows, cyclical industries such as manufacturing, mining & logging, construction and transportation & warehousing added a total of 94,000 jobs in January – one of the best showing

FXstreet.com: Fundamental: Reports on Economic Indicators
FXstreet.com: Reports on Economic Indicators. Economic Indicators explained. A resource to understand how big institutions handle the various economic informations.

OPINION: Canadian employment remained essentially unchanged in January, a performance well below consensus expectations for a 22K gain. One silver lining of this report is the performance of the private sector (+19.7K). This sector increased headcounts for a third month in a row thanks to solid performance of the manufacturing sector which benefits from improvements south of the border. Despite this rebound, private sector jobs in Canada still remain below last July’s peak due to the massive

FXstreet.com: Fundamental: Reports on Economic Indicators
FXstreet.com: Reports on Economic Indicators. Economic Indicators explained. A resource to understand how big institutions handle the various economic informations.

The January labour market report is extremely positive, with243 000 jobs created. Details show the strength was across the board, with strong figurse for manufacturing, construction and private services. Additionally, the unemployment rate reached its lowest since February 2009. This should be enough to reassure FOMC members about the strength of the recovery. The January labour market report is extremely positive. Non-farm payrolls grew by 243 000 over the month, accelerating from an already

FXstreet.com: Fundamental: Reports on Economic Indicators
FXstreet.com: Reports on Economic Indicators. Economic Indicators explained. A resource to understand how big institutions handle the various economic informations.

FXstreet.com: Fundamental: Reports on Economic Indicators
FXstreet.com: Reports on Economic Indicators. Economic Indicators explained. A resource to understand how big institutions handle the various economic informations.

In January, the business activity index in the services sector was up from 54.0 in December to 56.0, back to its highest level since last March. Furthermore, it signals that activity in services has probably rebounded at the beginning of the year, after having stagnated in Q4 2011. Consequently, the composite PMI for January rose from 51.5 in December to 53 in January, pointing that activity accelerated at the beginning of this year. If this trend is to continue in the coming months, it seems

FXstreet.com: Fundamental: Reports on Economic Indicators
FXstreet.com: Reports on Economic Indicators. Economic Indicators explained. A resource to understand how big institutions handle the various economic informations.

The growth potential of different regions of the world in 2012 will depend in large part on the underlying credit environment, both for government and corporations. At this juncture, North America is well positioned. The euro zone sovereign debt uncertainty notwithstanding, corporate bond yields in North America remain near record lows. That is good news for large firms but what about the small and medium sized enterprises who tend to be more dependent on the banking sector for their financing

FXstreet.com: Fundamental: Reports on Economic Indicators
FXstreet.com: Reports on Economic Indicators. Economic Indicators explained. A resource to understand how big institutions handle the various economic informations.

The Congressional Budget Office’s release this week of the Budget and Economic Outlook reiterated the unsustainable nature of current fiscal policy and reflected a more pessimistic outlook for economic growth. Comparing the Economic Outlooks The release this week of the Congressional Budget Office’s Budget and Economic Outlook painted a picture of unsustainable fiscal policy and a much slower economic growth environment over the next decade. The path of economic growth according to the CBO is

FXstreet.com: Fundamental: Reports on Economic Indicators
FXstreet.com: Reports on Economic Indicators. Economic Indicators explained. A resource to understand how big institutions handle the various economic informations.

Reflecting a strong rebound in hours worked, nonfarm productivity increased at a 0.7 percent annualized rate in the fourth quarter. Unit labor costs increased 1.2 percent on the back of higher compensation costs. Productivity Slows Over 2011 Nonfarm productivity growth pulled back significantly in the fourth quarter as output per worker increased 3.6 percent, while hours worked rose 2.9 percent. For the year, productivity increased 0.7 percent–significantly lower than 2010’s 4.1 percent pace.

FXstreet.com: Fundamental: Reports on Economic Indicators
FXstreet.com: Reports on Economic Indicators. Economic Indicators explained. A resource to understand how big institutions handle the various economic informations.

The ISM Manufacturing Index came in at 54.1 for January, essentially unchanged from 53.9 the month prior. The big positive is a jump in the orders component to 57.6, but input prices are showing signs of a bounce. Businesses Look for Temperate Growth…With an Eye on Prices The headline print of 54.1 was somewhat less than the 54.5 that had been expected by the consensus, but not enough to call the report a disappointment. This key sentiment index is still at a level consistent with firmly

FXstreet.com: Fundamental: Reports on Economic Indicators
FXstreet.com: Reports on Economic Indicators. Economic Indicators explained. A resource to understand how big institutions handle the various economic informations.

Total construction spending rose 1.5 percent in December, with broad-based gains. Private residential outlays increased 0.8 percent and nonresidential rose 3.3 percent. Construction will likely add to fourth-quarter GDP. Structures Should Add to Fourth-Quarter Real GDP Construction spending rose to an $816.4 billion annual pace, up 4.3 percent on a year-ago basis. Prior months’ data were revised downward. However, based on the BEA’s assumption for fourth-quarter economic growth, we now expect

FXstreet.com: Fundamental: Reports on Economic Indicators
FXstreet.com: Reports on Economic Indicators. Economic Indicators explained. A resource to understand how big institutions handle the various economic informations.

The January reading of the ISM highlights a manufacturing recovery gaining momentum. The composite index reached its highest level since the summer 2011, and the component for new orders announce this trend is not too last. Even if welcome news, this development is not as crucial as the one of the labour market. See you next Friday! The manufacturing ISM survey highlights another improvement in confidence in January. The composite index increased for the third month in a row, to 54.1, the

FXstreet.com: Fundamental: Reports on Economic Indicators
FXstreet.com: Reports on Economic Indicators. Economic Indicators explained. A resource to understand how big institutions handle the various economic informations.

Inflation was stable at 2.7% in January, after declining by 0.3 pp in the previous month. VAT increases have increased prices of many items in January, probably offsetting the positive effects coming from energy related base effect. Nevertheless, inflation is on a downward trend and it is likely to fall back below 2% this summer, and remain below this threshold thereafter. Inflation was stable at 2.7% in January, after declining by 0.3 pp in the previous month. VAT increases (notably in France,

FXstreet.com: Fundamental: Reports on Economic Indicators
FXstreet.com: Reports on Economic Indicators. Economic Indicators explained. A resource to understand how big institutions handle the various economic informations.

Some of the optimism consumers expressed at the turn of the year appears to have given way. Consumer confidence fell 3.7 points to 61.1 in January, as concerns about job and income prospects intensified a bit. Optimism Gives Way, Just Like Many New Year’s Resolutions One month into the New Year consumers appear to have a decidedly less optimistic view of the 2012 economy. While the Consumer Confidence Index only fell 3.7 points in January, the drop was evident in nearly every key component of

FXstreet.com: Fundamental: Reports on Economic Indicators
FXstreet.com: Reports on Economic Indicators. Economic Indicators explained. A resource to understand how big institutions handle the various economic informations.

OPINION: Canadian GDP surprised to the downside in November, falling 0.1%, well below consensus expectations of +0.2%. Those forecasts would have been roughly right if Mining & Oil & Gas extraction sector have been flat instead of contracting 2.2%, its worst showing in 6 months. Note that this volatile sector which explained most of the strong growth observed in Q3, will now harm economic activity in Q4. We are not particularly worried by this poor performance given that it is

FXstreet.com: Fundamental: Reports on Economic Indicators
FXstreet.com: Reports on Economic Indicators. Economic Indicators explained. A resource to understand how big institutions handle the various economic informations.

Total compensation costs for civilian workers increased as expected, up 0.4 percent in the fourth quarter. While wages and salary growth remained tame, private sector benefit costs picked up as 2011 came to an end. Mixed Picture in Sector Benefit Costs Benefits, which constitute 30 percent of total compensation costs, provided a mixed picture by sector as 2011 came to a close. Private industry benefits growth remained elevated on a year-ago basis and currently stands at 3.6 percent. The public

FXstreet.com: Fundamental: Reports on Economic Indicators
FXstreet.com: Reports on Economic Indicators. Economic Indicators explained. A resource to understand how big institutions handle the various economic informations.

Consumer goods spending fell sharply by 0.7% in December and by 3.1% on a year-on-year basis. This is largely due to an unusually mild weather. But this remains bad news and reminds us how under pressure households consumption is. However, for the whole fourth quarter, goods spending are stable. A zero figure for GDP growth thus remains a likely outcome contrary to our current expectations of a slight contraction.

FXstreet.com: Fundamental: Reports on Economic Indicators
FXstreet.com: Reports on Economic Indicators. Economic Indicators explained. A resource to understand how big institutions handle the various economic informations.

According to the preliminary data released by the Federal Labour Office, the unemployment rate fell in January (to 6.7%). The number of unemployed recorded its largest decrease since March 2011 (-34, 000, after -25, 000 in December). The pace of increase in employment (published with one-month lag) was also strong in December. Up by 50, 000 m/m, it rose by 1.4% year-inyear. Employment probably should increase at a slower pace in the coming months, in line with an expected decline in economic

FXstreet.com: Fundamental: Reports on Economic Indicators
FXstreet.com: Reports on Economic Indicators. Economic Indicators explained. A resource to understand how big institutions handle the various economic informations.

Personal income rose a solid 0.5 percent in December, marking the largest gain in 10 months. With spending essentially flat, the stronger income gain helped boost the personal saving rate to 4.0 percent. Consumers May Have A Little More Staying Power Personal income rose 0.5 percent in December, and wages and salaries increased 0.4 percent. The gains likely reflect the pickup in hiring, particularly in the factory sector. Wages and salaries in the goods-producing sector jumped 1.0 percent and

FXstreet.com: Fundamental: Reports on Economic Indicators
FXstreet.com: Reports on Economic Indicators. Economic Indicators explained. A resource to understand how big institutions handle the various economic informations.

According to the first estimate, CPI inflation decreased for the fourth month in a row in January (to 2%, after 2.1% in December). According to regional data, used to estimate the preliminary CPI, inflation rose slightly in food sector, whereas it eased in energy sector. Over the month, prices dropped by 0.4% m/m. Regional data suggest that prices rose in food and in energy sectors. But, by contrast, they fell in leisure and hostel and restaurant sectors. According to the first estimate, CPI

FXstreet.com: Fundamental: Reports on Economic Indicators
FXstreet.com: Reports on Economic Indicators. Economic Indicators explained. A resource to understand how big institutions handle the various economic informations.

We have heard many concerns in recent months about the growing indebtedness of households. More recently, the focus of attention has turned to the seemingly “abnormal� number of older Canadians that are still using credit instead of repaying their debt. From our perspective, these households are far from being reckless. It is important to keep in mind that the participation rate of workers aged 55+ has increased significantly since the mid 1990s (from 23% to more than 34%). This development has

FXstreet.com: Fundamental: Reports on Economic Indicators
FXstreet.com: Reports on Economic Indicators. Economic Indicators explained. A resource to understand how big institutions handle the various economic informations.

The Spanish economy plunged in Q4 after seven consecutive quarters of growth. The positive contribution from net exports was not sufficient to offset the fall in domestic demand. Without support from external demand, the fiscal consolidation will be harder to achieve. GDP contracted by 0.3% q/q (+0.3% y/y) in Q4, implying an annual GDP growth of 0.7%. This is in line with our expectations and with the consensus. The fall in activity was probably driven by the decline in domestic demand.

FXstreet.com: Fundamental: Reports on Economic Indicators
FXstreet.com: Reports on Economic Indicators. Economic Indicators explained. A resource to understand how big institutions handle the various economic informations.

Economic conditions improved for the eurozone as a whole in January. The Economic Sentiment Indicator rose by 0.6 point to 93.4 in January. Admittedly, this was a small rise. Nevertheless, it was the first improvement in almost one year. The improvement was, however, highly dependent from the German recovery, which is largely outperforming its peers. This trend is likely to persist over the coming months. Economic conditions improved for the eurozone as a whole in January, according to the

FXstreet.com: Fundamental: Reports on Economic Indicators
FXstreet.com: Reports on Economic Indicators. Economic Indicators explained. A resource to understand how big institutions handle the various economic informations.

Increases eligibility for debt-constrained and underwater borrowers Will triple the payment to banks per dollar of principal forgiven Investors with rental properties will also be eligible Fannie Mae and Freddie Mac’s participation is up to federal regulators Following Tuesday’s State of the Union address, today the Obama Administration announced an expansion of the Home Affordable Modification Program (HAMP) to help debt-laden and underwater borrowers. This announcement is the

FXstreet.com: Fundamental: Reports on Economic Indicators
FXstreet.com: Reports on Economic Indicators. Economic Indicators explained. A resource to understand how big institutions handle the various economic informations.

Prime Minister Harper delivered a very important speech in Davos this week on the need to adopt new measures to ensure the long-term sustainability of social programs in Canada. After his recent warnings on the need to control healthcare spending, the PM is now calling on the need to better fund the retirement income system. We think that this decision comes at an opportune time. Back in the early 1960s when the bulk of social programs where introduced, there were about 7 workers per retired

FXstreet.com: Fundamental: Reports on Economic Indicators
FXstreet.com: Reports on Economic Indicators. Economic Indicators explained. A resource to understand how big institutions handle the various economic informations.

The US economy grew 2.8% QoQ annualized in 4Q11 due in large part to strength in private inventories and personal consumption expenditures Negative contributions from government spending and imports influenced the lowerthan- expected figure The advance estimate brings 2011 real GDP growth to 1.7% Real GDP growth for 4Q11 came in at 2.8% QoQ annualized on a seasonally-adjusted basis, slightly lower than expected but still in line with our projections for stronger fourth quarter activity.

FXstreet.com: Fundamental: Reports on Economic Indicators
FXstreet.com: Reports on Economic Indicators. Economic Indicators explained. A resource to understand how big institutions handle the various economic informations.

Real GDP rose 2.8 percent with gains in consumer spending, business equipment investment and housing. The negatives were the restructuring in local government and federal defense cuts. Inflation is slowing. Growth: Continued Momentum at a Modest Pace Sustained growth—neither boom nor bust—remains the theme for this economy and has been our outlook now for some time. Real GDP rose at a 2.8 percent pace in the fourth quarter and is up 1.6 percent from a year ago. The gains in the fourth quarter

FXstreet.com: Fundamental: Reports on Economic Indicators
FXstreet.com: Reports on Economic Indicators. Economic Indicators explained. A resource to understand how big institutions handle the various economic informations.

GDP growth was a solid 2.8% in 2011 Q4. This confirms the expected acceleration. Domestic private demand led the rebound, especially households’ spending on durable goods, and residential investment, which appreciably bounced back. Let’s hope this acceleration will keep going in 2012 and that it will be translated into job creations. As expected, the economy kept on accelerating, recording a strong 2.8% growth rate (quarterly annualised) in the last quarter of 2011. This is the fastest pace of

FXstreet.com: Fundamental: Reports on Economic Indicators
FXstreet.com: Reports on Economic Indicators. Economic Indicators explained. A resource to understand how big institutions handle the various economic informations.

The State of the Union provided a platform for president Obama to respond to Republican criticisms. The populist approach reborn, as Obama appeals to 99% and rebukes Capitol hill. Regulatory push was partisan-neutral at times but could come at the cost of environmental regulation. The pro-growth, pro-employment tone suggests a White House spending push. The State of the Union began with a strong appeal to the troops and their sacrifice in Iraq, and included foreign policy rhetoric that

FXstreet.com: Fundamental: Reports on Economic Indicators
FXstreet.com: Reports on Economic Indicators. Economic Indicators explained. A resource to understand how big institutions handle the various economic informations.

Consumer price inflation rose to -0.2% in December, 0.3 point higher than in the previous month. This was mainly due to higher food prices. Core inflation was virtually unchanged. We expect core inflation to remain in negative territory in 2012 and 2013. The major upward risks for prices are related to prices for commodities and electricity. In December, consumer prices fell by 0.2% from a year earlier. This was 0.3 pp higher than in November. This increase can be largely explained by a sharp

FXstreet.com: Fundamental: Reports on Economic Indicators
FXstreet.com: Reports on Economic Indicators. Economic Indicators explained. A resource to understand how big institutions handle the various economic informations.

In the first print reflecting the Conference Board’s new calculation method, the Leading Economic Index rose 0.4 percent in December, suggesting that economic momentum will continue in 2012. Changes The Conference Board has shaken up the way it calculates the Leading Economic Index (LEI). After three years of the Federal Reserve priming the pump by increasing the money supply, the Conference Board is yanking the money supply and replacing it with the “Leading Credit Index,� a combination of

FXstreet.com: Fundamental: Reports on Economic Indicators
FXstreet.com: Reports on Economic Indicators. Economic Indicators explained. A resource to understand how big institutions handle the various economic informations.

Following three straight monthly gains, new home sales fell 2.2 percent in December to a 307,000-unit pace. On a regional basis, much of the drop was concentrated in the South, where activity dropped 10.1 percent. Annual Sales Register Lowest Level on Record New home sales unexpectedly fell 2.2 percent in December, and net revisions from the prior three months shaved 8,000 units. With new home sales still bouncing along the bottom, activity registered its lowest level on record in 2011, rising

FXstreet.com: Fundamental: Reports on Economic Indicators
FXstreet.com: Reports on Economic Indicators. Economic Indicators explained. A resource to understand how big institutions handle the various economic informations.

Durable goods orders blew away already aggressive expectations for a solid number in December, rising 3.0 percent. November orders were also revised significantly higher to a 4.3 percent monthly gain. Durable Good Orders Accelerate in Q4 The good economic news coming from the December durable orders figures will bolster expectations for a solid economic start to 2012. The headline gains from durable goods in November and December are eye-catching, with back-to-back monthly gains of 4.3 percent

FXstreet.com: Fundamental: Reports on Economic Indicators
FXstreet.com: Reports on Economic Indicators. Economic Indicators explained. A resource to understand how big institutions handle the various economic informations.

California’s economy has gained some important momentum in recent months. While the California economy struggled over the summer, there was a clear improvement in the labor market during the fall. Household employment growth surged and the California unemployment rate plunged. This strong finish to the year should ensure a moderate increase in nonfarm payrolls in 2011. Yet the outlook for California in 2012 remains very much in flux. Slower growth in Asia and a stronger dollar will hurt