Rolling coverage of the latest economic and financial news
- Latest: Eurozone shrank 0.6% in January-March, meaning double-dip recession
- Germany shrank 1.7% in Q1
- Italian GDP down 0.4%
- Spain’s GDP fell 0.5% in January-March
- Intro: French GDP grew 0.4% in first quarter of 2021
- Yesterday, US GDP grew by 1.6% (6.4% annualised)
3.34pm BST
Yet more evidence that the US economy is strengthening: consumer confidence has jumped this month to a pandemic high, according to the University of Michigan’s survey:
.@umisr‘s monthly Consumer Sentiment Index rose to 88.3 in April 2021, up from 84.9 in March & well above last April’s 71.8—the best reading since the start of the pandemic.
The renewed confidence is due in part to record federal stimulus spending.https://t.co/wLGz2bhFyZ
Uni Michigan #Consumer Sentiment index +3.4pt to 88.3 in April
Current Conditions: 97.2 (+4.2pt)
Consumer Expectations: 79.7 (+3pt)
“Growing sense that upward momentum in jobs & incomes will persist… record stimulus spending & positive impact from #vaccinations” Curtin pic.twitter.com/CCJGYjdqDX
3.09pm BST
Oof! Economic activity in the Chicago region has surged this month — further underlining how the US is outpacing Europe.
The Chicago Business Barometer has jumped to 72.1 in April, the highest level since December 1983.
Demand improved markedly in April with New Orders rising by 9.9 points to a near-7-year high. Production ticked up 0.9 points to the highest level since January 2018.
Anecdotal evidence suggested an anticipated increase in business activity, partly because firms are overbuying due to raw material shortages. Order Backlogs soared, up 16.2 points in April, hitting the highest level since December 1973. Firms are experiencing difficulties in getting certain components and raw materials.
Prices paid at the factory gate skyrocketed a further 11.1 points in April, surging to a 41-year high. Raw material shortages and transportation problems continue to weigh on companies cost burden.
MNI Chicago April Biz Barometer rises to near 38-year high as the headline Index jumps to 72.1 from 66.3* in March
#chicagopmi #MNI #chicagoreport #ISM#chicagoISM
*rounding pic.twitter.com/NH1MtT3K3b
Chicago PMI Highest Since 1983 https://t.co/K1y8sBm5sN Real Macro pic.twitter.com/e3BLJF5dQS
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Source: The Guardian