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31 Mar 2016
UK GDP revised up a notch while Eurozone inflation stays negative - TDS
Research Team at TDS, suggests that reflecting the mixed nature of the German (higher), French (as expected), and Spanish (weaker) inflation reports in the last 24 hours, broader euro area inflation in March came in as markets expected at -0.1% y/y.
Key Quotes
“We had flagged upside risks to this number, and these materialised in the core CPI measure, which came in at 1.0% y/y (above consensus of 0.9%). Services prices accelerated on the month to 1.3% y/y, but this was partly offset by weakness in the non-energy goods category, which decelerated to +0.5% y/y.
UK: Fourth-quarter GDP was revised up a notch from 0.5% to 0.6% q/q, but the good news here contrasted sharply with two other releases today: the current account for 15Q4 showed the biggest deficit on record (to 1955) of 7.0% of GDP and the household saving ratio fell to a record low of 3.8%.”
Key Quotes
“We had flagged upside risks to this number, and these materialised in the core CPI measure, which came in at 1.0% y/y (above consensus of 0.9%). Services prices accelerated on the month to 1.3% y/y, but this was partly offset by weakness in the non-energy goods category, which decelerated to +0.5% y/y.
UK: Fourth-quarter GDP was revised up a notch from 0.5% to 0.6% q/q, but the good news here contrasted sharply with two other releases today: the current account for 15Q4 showed the biggest deficit on record (to 1955) of 7.0% of GDP and the household saving ratio fell to a record low of 3.8%.”