Economy.com Daily Update: March 12, 2021

Today's Economy

PPI rose 0.5% in February but the bond market could get rattled by future inflation data.

EU getting ready for the recovery period.

The American Rescue Plan will deliver a $1.9 trillion boost to the economy.

Consumer prices are expected to rise as the U.S. moves toward herd immunity.

Commentary

Lockdown likely boosted Lima's jobless rate.

The government has announced a step-by-step plan to restart the economy.

New Zealand’s economy has experienced a stronger than expected rebound.

Vaccinations, less social distancing, and stronger North American and European economies will drive recovery.

Today's Economic Indicators

Germany
Consumer Price Index
Feb. 2021: 1.3%
German inflation accelerated to 1.3% y/y in February from 1% in January.

Spain
Consumer Price Index
Feb. 2021: 0.0% y/y
Spain's consumer price index remained flat in yearly terms in February, after rising by 0.5% y/y in January. Lower prices of energy, vegetables, and meat explain were behind the reading.

Spain
Retail Sales
Jan. 2021: -7.6% m/m
Spanish retail sales fell by 7.6% m/m in January, following the upwardly revised 1.3% gain in December.

United Kingdom
Monthly GDP
Jan. 2021: -2.9% m/m
As expected, U.K.

Euro Zone
Industrial Production
Jan. 2021: 0.8%
Euro zone industrial production rose by 0.8% m/m in January, following a 0.1% decline in December.

Brazil
Retail Sales Index
Jan. 2021: -0.3% y/y
Household consumption in Brazil contracted in January as the number of COVID-19 infections accelerated.

India
Industrial Production
Jan. 2021: -1.6% y/y
Quick estimates show India's industrial production backtracked in January, declining by 1.6% y/y and reversing all of December's 1% increase (before revision), though still better than November’s 2.1% slump.

India
Consumer Price Index
Feb. 2021: 5.03% y/y
India's consumer price index rose to 5.03% y/y in February from a low point of 4.06% in January.

Mexico
Industrial Production
Jan. 2021: -4.9% y/y
The national industry moderated significantly in January, posting a deeper annual contraction as the pandemic persisted.

Russian Federation
Foreign Trade
Jan. 2021: US$8.9 bil
Russia’s trade balance slipped in January after a strong showing in December.

United States
Producer Price Index
Feb. 2021: 0.5% m/m
Rising global energy and commodity prices continue to put upward pressure on U.S. producer prices, but the implications for the Federal Reserve are minimal.

Canada
Industrial Capacity Utilization
2020Q4: 79.2%
Canadian industrial capacity utilization continued to make up for lost ground in the fourth quarter of 2020.

Canada
Labor Force Survey
Feb. 2021: 8.2%
Subsiding COVID-19 infections and the easing of public health restrictions resurrected job growth in February.

Canada
Wholesale Trade
Jan. 2021: 4%
Wholesale trade bounced back after a disappointing performance in December.

United States
Moody’s Analytics & CNN Business Back-to-Normal Index
March 10: 83.4
The Moody’s Analytics & CNN Business Back-to-Normal Index continued its ascent this week.

Peru
Monetary Policy
Mar. 2021: 0.25%
Central bank directors left the policy rate unchanged at 0.25% nearly one year after lowering it to its current historical low.

United States
University of Michigan Consumer Sentiment Survey
Mar. 2021: 83
U.S. consumer sentiment gained more ground than expected in March despite weakening economic drivers as consumers became more confident regarding vaccinations and the coming end of the COVID-19 pandemic.

United States
Quarterly Services Survey
2020Q4:
There are parts of the U.S. economy doing better than others, and services are among those struggling.