Economy.com Daily Update: September 9, 2022

Today's Economy

The central bank will raise rates as long as the euro zone does not experience a sharp, demand-driven contraction.

A shake-up is in store for the housing market.

Presidents Xi and Putin will discuss continued partnership.

Industrial output falls across most sectors in France and Spain.

Commentary

As inflation continues to take center stage, central banks boost policy rates.

August employment doesn’t settle the debate over whether the Fed will hike by 50 or 75 basis points this month.

A slump in U.K. retail sales and euro zone industrial production.

The sheer volume of the South American country's oil reserve could mean massive economic growth over the next several years.

Today's Economic Indicators

Indonesia
Retail Sales
Aug. 2022: 6.2% y/y
Indonesia’s retail sales grew 6.2% y/y in July, up from 4.1% y/y in June, matching our expectation.

Malaysia
Industrial Production
Jul. 2022: 12.5% y/y
Malaysia’s industrial production index was up 12.5% y/y in July, a touch above the previous month’s 12.1% increase.

Netherlands
Industrial Production
Jul. 2022: 0.4% m/m
Industrial production rebounded in July, gaining 0.4% m/m from a significant two-month contractionary streak.

Norway
Consumer Price Index
Aug. 2022: 6.5% y/y
Norway’s consumer price index declined to 6.5% year on year in August.

Finland
Industrial Production
Jul. 2022: -2.4% m/m
In July, Finland’s industrial production contracted by 2.4% month over month after a downwardly revised 1.1% increase in June.

France
Industrial Production
Jul. 2022: -1.6% m/m
Industrial production in France took a hit in July.

Spain
Industrial Production
Jul. 2022: -1.1% m/m
In seasonally adjusted and calendar-adjusted terms, Spain’s industrial production contracted 1.1% month over month in July.

Austria
Industrial Production
Jul. 2022: -3.9% m/m
Austrian industrial production in July followed June's declining trend with an even sharper month-over-month decline of 3.9%.

Belgium
Industrial Production
Jul. 2022: -5.1% y/y
In July, Belgium's industrial production fell 5.1% on a year-ago basis, following an upwardly revised 11.1% decline in June.

Mexico
Industrial Production
Jul. 2022: 2.6% y/y
Mexico's national industry advanced in July, extending its recovery and helping the economy to move forward.

Brazil
Consumer Price Index
Aug. 2022: 8.73% y/y
Inflation in Brazil declined and fell below double digits in August.

Canada
Industrial Capacity Utilization
2022Q2: 83.8%
Capacity utilization in the second quarter climbed by 1.9 percentage points after running unchanged from the fourth quarter of 2021 to the first quarter of 2022.

Canada
Labor Force Survey
Aug. 2022: 5.4%
The summer keeps bringing more bad news for the Canadian labor market.

Peru
Monetary Policy
Sep. 2022: 6.75%
The Central Reserve Bank of Peru raised interest rates another 25 basis points in the September meeting, in line with our forecast, to bring the policy rate to 6.75%.

United States
Wholesale Trade (MWTR)
Jul. 2022: 0.6% m/m
Wholesale inventory growth decelerated in July, growing 0.6% from the month before after climbing 1.8% in June.

United States
Moody’s Analytics & CNN Business Back-to-Normal Index
September 07: 91.2
The Moody’s Analytics Back-to-Normal Index inched down 0.2 point this week, from a revised 91.4 to 91.2.

Russian Federation
Consumer Price Index
Aug. 2022: 14.3% y/y
Weak consumer demand for nonfood goods and expanded supply of agricultural crops contributed to the slowdown in the annual inflation rate to 14.3% y/y in August from 15.1% previously.

United States
Financial Accounts - Households
2022Q2: $143.76 tril
Household wealth fell sharply in the second quarter as the stock market ended the quarter near its low for the year, pushing down related components of wealth.

United States
Financial Accounts - Nonfinancial Corporate
2022Q2: $30.06 tril
Nonfinancial corporate business wealth decreased by $334 billion to $30.06 trillion during the second quarter.