Weekly economic update

Economic Update for April 16, 2018

Highlights of news-making events of the past week, from the economy and profits to Europe and interest rates.

economy

  • The CPI declined 0.1% and core CPI rose 0.2% in March, the Bureau of Labor Statistics stated
  • The Producer Price Index for final demand advanced 0.3% in March, the Bureau of Labor Statistics reported
  • Import prices remained stable while export prices rose in March, according to the Bureau of Labor Statistics

employment

  • Initial jobless claims fell by 9,000 to 233,000 in the week ended April 7, 2018, the Labor Department found

profits

  • For the 12-month period ended March 31, 2018, net dividend increases for U.S. stocks rose 36.5%, reaching $45.1 billion, according to S&P Dow Jones Indices

emotion

  • The University of Michigan’s index of consumer sentiment fell to 97.8 in April from 101.4 in March
  • Small business optimism remained high in March. It has been in the survey’s highest 5% for 16 months, the NFIB reported
europe

  • Euro area industrial production fell by 0.8% in February, Eurostat reported
  • The euro area posted a trade surplus in February, Eurostat noted
  • Consumer prices climbed 1.6% in March, according to Germany’s Federal Statistical Office

rates

  • The yield on the 10-year U.S. Treasury note rose

risks

  • China’s nominal GDP growth could begin to decline
  • There is a mismatch between the low-volatility market environment and policy uncertainty
  • Fed tightening measures could potentially contribute to inverting the yield curve in 2018