Today’s US personal spending and income report for September fell short of projections. Economists overall were looking for a 0.3% rise in the headline income number, but the actual data showed a lesser 0.2% increase last month. Consumption fared worse, retreating by 0.2% vs. the 0.1% gain that the crowd anticipated via the consensus forecast according to Econoday.com. It’s fair to say that September was soft for S&I, but the comparisons look a bit brighter when we minimize the short-term noise and focus on the year-over-year trend. In fact, private-sector wages continue to expand at a robust annual pace. That doesn’t change the fact that the monthly data stumbled in September, but the big-picture analysis still leaves room for optimism.
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● German retail sales see biggest fall in more than seven years | Reuters
German retail sales posted their biggest monthly decline in more than seven years in September, data showed on Friday, a sign that consumers cannot be relied on to prop up Europe’s largest economy.
● BOJ shocks markets with more easing as inflation slows | Reuters
The Bank of Japan surprised global financial markets on Friday by expanding its massive stimulus spending in a stark admission that economic growth and inflation have not picked up as much as expected after a sales tax hike in April.
● Eurocoin Indicator Falls For Fourth Month | RTT
A measure of the current economic situation in the euro area declined for the fourth consecutive month in October, a survey by the Bank of Italy and the Centre for Economic Policy Research showed Friday.
● US Economy Grows at Steady Clip | Wall Street Journal
Military spending & drop in imports drive 3.5% GDP gain as global Headwinds gather
● German EU-harmonized inflation slows to 0.7% | MarketWatch
German consumer-price inflation unexpectedly slowed in October, the country’s statistics office said Thursday, an indication that the eurozone continues to face the risk of too-low inflation or deflation.
● Eurozone Oct Economic Sentiment Rises For First Month In Four | MNI
Eurozone economic sentiment rebounded in October, recording it first advance in four months and rising to just above its long-term average, data from the European Commission showed Thursday.