Economy.com Daily Update: September 1, 2022

Today's Economy

There has been no high-yield issuance recently.

Did the August effect strike again?

Economic uncertainty surfaces despite solid U.S. demand for Mexican products.

Despite a rebound in July, sales continue lagging year-ago levels.

Commentary

Businesses appear to have had surprising success passing through cost increases to consumers.

Debt crises in several smaller economies highlight broader fiscal troubles.

House price appreciation will quickly cool in the coming quarters as higher mortgage rates zap demand.

Floods and drought are devastating the region.

Today's Economic Indicators

Indonesia
Consumer Price Index
Aug. 2022: 4.7% y/y
Indonesia’s headline inflation eased slightly to 4.7% y/y in August from 4.9% in July.

Switzerland
Consumer Price Index
Aug. 2022: 3.5%
Switzerland’s inflation rate inched higher to 3.5% y/y in August from 3.4% in July.

Germany
Retail Sales
Jul. 2022: 1.9% m/m
German retail sales, in real terms, rose 1.9% on a seasonally adjusted basis in July, following a decline of 1.5% in June.

Switzerland
Retail Sales
Jul. 2022: 2.6% y/y
Retail sales in Switzerland slid by 0.5% m/m in July, erasing a 0.2% increase in June, thereby leaving the index 2.6% higher than it was a year earlier.

Austria
GDP
2022Q2: 1.5% q/q
Bouncing back from the pandemic-induced contraction in the fourth quarter of 2021 and first quarter of 2022, Austrian real GDP growth in the second quarter of 2022 was confirmed at 1.5% quarter over quarter, Higher than the 0.5% quarter-over-quarter flash estimate.

Italy
Unemployment
Jul. 2022: 7.9%
Italy’s jobless rate fell to 7.9% in July, as month-on-month unemployment dropped by 32,000—almost two percentage points below pre-pandemic values.

Italy
GDP
2022Q2: 1.1% q/q
Italy's GDP grew 1.1% quarter over quarter in the second quarter and 4.7% in year-ago terms.

Euro Zone
Unemployment
Jul. 2022: 6.6%
The euro zone’s unemployment rate was 6.6% in July, a small decline from upwardly revised 6.7% in June.

Portugal
Industrial Production
Jul. 2022: -0.1%
Portuguese industrial production marginally decreased again in July.

United States
Challenger Report
Aug. 2022: 20,485
Job cut announcements from U.S.-based employers declined in August, dropping 21% from the month prior.

Brazil
GDP
2022Q2: 3.2% y/y
Brazil’s economy advanced further in the second quarter, still showing moderation.

Chile
Monthly Economic Activity Indicator
Jul. 2022: 1.0% y/y
Chile’s economic activity continued to moderate in July in annual terms as domestic demand weakens.

United States
Jobless Claims
August 27: 232,000
U.S. initial claims for unemployment insurance benefits dropped 5,000 to 232,000 in the week ended August 27, and there was another downward revision to the prior week.

Canada
Building Permits
Jul. 2022: -6.6% m/m
Unsurprisingly, the value of building permits in Canada declined substantially in July.

United States
Productivity and Costs
2022Q2: -4.1%, q/q, SAAR
U.S. productivity in the second quarter looks slightly better upon revision.

World
Moody's Analytics Global HPI
2022Q2: 15.4% y/y
The Moody’s Analytics estimate of the worldwide house price index increased by 15.4% y/y in nominal terms during the second quarter, following a downwardly revised 13.5% rise in the first quarter.

United States
Construction Spending (C30)
Jul. 2022: -0.4% m/m
The value of U.S. construction put in place declined 0.4% in July from the prior month.

United States
St. Louis Fed Financial Stress Index
August 26: -1.70
Financial stress increased for the third consecutive week, with the St.

United States
ISM Manufacturing Index
Aug. 2022: 52.8
The U.S.

United States
Natural Gas Storage Report
August 26: 61 bil cubic feet
Last week’s build in gas stocks was only a hair above analyst expectations, so this report will have minimal impact on gas prices.

Peru
Consumer Price Index
Aug. 2022: 8.4% y/y
The closely watched Lima CPI pushed lower in August.

United States
Vehicle Sales - BEA
Aug. 2022:

Brazil
Foreign Trade
Aug. 2022: US$4.165 bil
Brazil’s trade surplus continued to moderate in August as exports decelerated and imports gained steam.

South Korea
Consumer Price Index
Aug. 2022: