Key economic releases last week
- US inflation data was hotter than expected as the core reading rose 5.6% YoY and 0.4% MoM. Headline CPI rose 6.4% YoY and 0.5% MoM.
- Australian employment data missed expectations for a gain, with employment falling for a second consecutive month as 11.5k jobs were shed. The unemployment rate rose 0.2% to 3.7%.
- Westpac Consumer Sentiment fell 6.9% back to near record lows. Current and expected family finances and economic conditions all deteriorated as mortgages remained a key concern.
- NAB Business Confidence rebounded in January along with conditions but remains on a downward trend.
- US retail sales grew 3% MoM, above expectations for 1.8% as consumers remained strong. Industrial production was flat MoM compared to expectations for 0.5% gains.
Key releases for the week ahead
- US Q4 GDP
- US personal consumption expenditures
- EU inflation
Chart of the week
According to the latest economic data, the US consumer is proving to be more resilient than anticipated, contradicting the belief that the country’s economy is rapidly losing momentum. In January, US retail sales exceeded the 1.8% growth predicted by economists, rising by 3% MoM. The chart indicates that consumers are still investing in entertainment and recreation, which could further contribute to inflation in the services sector. Consequently, there is a likelihood that the Federal Reserve may need to continue to raise rates, and there is an increasing possibility of the peak fed funds rate being higher than previously anticipated.
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Monday 20 February 2023, 10am
For more information on the above please contact Bentleys Wealth Advisors directly or on +61 2 9220 0700.
This information is general in nature and is provided by Bentleys Wealth Advisors. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decision based on this information.
