Revised German and British 2Q GDP Data Released

August 23, 2013

In a pretty nondescript summer Friday, the main development has been an upward revision of U.K. GDP growth of a 0.1 percentage point.  Such went up by 0.7% between the first and second quarters and was 1.5% greater than in the second quarter of 2012.  Quarter-over-quarter gains amounted to 0.4% in personal consumption, 0.9% in government expenditures, 1.7% in capital investment and 3.6% in exports.  The U.K. service index climbed 0.6% in the second quarter but was unchanged between May and June. 

German GDP also advanced 0.7% between 1Q and 2Q, not annualized.  This followed zero growth in the first quarter and was unrevised from the preliminary second-quarter estimate.  Between 2Q12 and 2Q13, German GDP advanced by 0.9% but just 0.5% when adjusted for the number of business days in each quarter.  On-quarter growth in personal consumption was 0.5%.  That for government spending was 0.6%.  Machinery and equipment investment went up 0.9%, while investment in construction climbed by 2.6%.  Export growth outpaced imports, 2.2% to 2.0% and made a 0.2 percentage point contribution to GDP growth.

The dollar has risen 0.6% against the kiwi, 0.4% versus the loonie, 0.3% relative to the yen, 0.2% against the Australian dollar, and 0.1% versus the euro and Swiss franc.  The yuan is unchanged, and sterling has edged up 0.1% in response to the upward revision of British GDP numbers.

Brazil’s central bank unveiled a $60 billion warchest of intervention resources to strengthen the beleaguered real between now and yearend.

Share prices in the Pacific Rim rose 2.2% in Japan, 1.1% in South Korea and India, 0.9% in Australia, and 0.8% in Taiwan but fell 0.7% in China, 0.2% in Hong Kong, and 0.1% in New Zealand.  in Europe, stocks have so far fallen by 0.5% in France and Italy and 0.2% in Spain.  The German Dax is unchanged, while the British Ftse has firmed 0.2%.

The yields on ten-year British gilts and Japanese JGBs are two basis points higher.  German bunds are steady.

Gold has increased 0.3% to a price of $1375.20 per ounce.  Oil at $105.11 per barrel is 0.1% firmer.

Moody’s will be reviewing ratings on the six largest U.S. banks.

Banks in Euroland repaid EUR 310 million of three-year LTROs, slightly less than half the sum at the previous repayment.

Icelandic wages dipped 0.1% in July and slowed 0.2 percentage points to a 12-month increase of 5.5%.

The Greek trade deficit widened 23% on month to EUR 1.24 billion in June.  Danish consumer confidence improved to a 5.9 reading in August from July’s 3.7.

Foreign direct investment in China was 24.1% greater than a year earlier in July.  That raised the year-to-date advance to 7.1%, best since end-2011, from 4.9% in 1H13.

According to the British Bankers Association, mortgage applications totaling 37.2K in July were little changed from June’s 37.3K but lower than forecast.

Euroland consumer confidence will get reported later today.  So will Canadian consumer prices, U.S. new home sales and the Brazilian and Mexican current accounts.  The second day of the Jackson Hole Monetary Symposium is today.  The conference ends Saturday.

Copyright 2013, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.

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