Market Overview

Bank Of America's Top 10 Economic Themes Of The Week


As the trading week comes to an end, a group of analysts at Bank of America recapped the top 10 economic themes of the week.

  1. FOMC: Inflation on my mind. The October FOMC minutes revealed “more concern” over downside risks to growth an inflation than the actual statement itself.
  2. Core CPI crawls higher. CPI was unchanged in October while core CPI rose 0.2 percent from November.
  3. Multi-family drives. Housing starts fell 2.8 percent in October to 1,009,000. At the same time, building permits rose 4.8 percent to 1,080,000.
  4. Payback from mining and utilities. Industrial production declined 0.1 percent in October while capacity utilization dipped to 78.9 percent. The analysts lowered their fourth quarter GDP tracking estimate by 0.2 percent to 2.8 percent.
  5. Over to you, Q4. The analysts are “more positive” over the outlook for household formation starts in 2015 given the improving economic backdrop.
  6. Strong sales. Existing home sales rose a “solid” 1.5 percent in October to 5.26 million homes.
  7. Soaring in Philadelphia. The Philly Fed index “soared” from 20.7 in October to 40.8 in November.
  8. Improvement despite the miss. The Empire manufacturing index rose from 6.17 in October to 10.16 in November but fell short of the 12.00 figure analysts were expecting.
  9. Build me up buttercup. The NAHB housing index rose from 54 in September to 58 in October.
  10. Don't be fooled: underlying softness in core PPI. PPI rose 0.2 percent month over month in October while core PPI rose 0.4 percent month over month.

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Posted-In: Bank of America CoreCPI Empire Manufacturing Index Existing Home Sales FOMC Household FormationAnalyst Color News

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