ROUNDUP: US economy grows faster than expected in autumn
WASHINGTON – The US economy grew more strongly than expected in the fall. In the fourth quarter, gross domestic product (GDP) rose by an annualized 3.3 percent compared to the previous quarter, as the Commerce Department announced on Thursday in Washington. Analysts had on average expected an annualized increase of 2.0 percent. The growth follows a strong increase of 4.9 percent in the summer quarter.
USA: Initial jobless claims rise more than expected
WASHINGTON – In the US, the number of weekly initial jobless claims rose surprisingly sharply. Last week, the number of applications for aid increased by 25,000 to 214,000, the Labor Department announced on Thursday in Washington. Economists on average had expected an increase to 200,000.
USA: Orders for durable goods are surprisingly stagnating
WASHINGTON – In the US, orders for durable goods remained unchanged in December. Orders stagnated month-on-month, as the US Department of Commerce announced on Thursday in Washington. Analysts had expected an increase of 1.5 percent on average.
USA: New construction sales increase significantly after a weak previous month
WASHINGTON – In the USA, the number of new homes sold rose significantly in December. 8.0 percent more houses were sold than in the previous month, as the Commerce Department announced on Thursday in Washington. Analysts on average had expected an increase of 10.0 percent. The sharp decline from the previous month was revised from 12.2 to 9.0 percent.
ROUNDUP 2: ECB is not lowering interest rates for the time being: ‘Discussion about this is premature’
FRANKFURT – Despite increasing economic concerns, the euro currency watchdogs are calling for one Interest rate cut not for the time being. The key interest rate at which banks in the euro area can obtain fresh money from the European Central Bank (ECB) will initially remain at 4.5 percent. The ECB Council decided this at its first meeting of the new year on Thursday.
ROUNDUP: Ifo index shows recession in Germany
MUNICH – The mood in the German economy deteriorated further at the beginning of the year and fell to its lowest level in more than three and a half years. The Ifo business climate fell by 1.1 points to 85.2 points in January compared to the previous month, as the Ifo Institute announced on Thursday in Munich. It is the second decline in a row, pushing the most important leading indicator for the German economy to its lowest level since May 2020. “The German economy is stuck in recession,” commented Ifo President Clemens Fuest.
France: Business climate remains stable at the beginning of the year
PARIS – Business sentiment in France remained unchanged at the start of the year. As in the previous month, the business climate was 98 points, the statistics office Insee announced on Thursday in Paris. Analysts had on average expected this development for January. The indicator is still slightly below its long-term average value of 100 points.
Turkish central bank raises key interest rate again – signals end of tightening
ANKARA – The Turkish central bank has its monetary policy tightened further and at the same time promised an end to the interest rate increases. The key interest rate will rise by 2.5 percentage points to 45.0 percent, as the central bank announced on Thursday after its council meeting in Ankara. Analysts had mostly expected the decision.
VDMA: Nationalist ideas location risk for Germany
FRANKFURT – The mechanical engineering association VDMA sees nationalist ideas as a threat to Germany as a business location. “A country that is as strong in exports as Germany needs open borders, a welcoming culture for foreign skilled workers and a firm anchoring in Europe and the euro area,” said a statement from the VDMA Presidium and the main management published on Thursday. “The nationalist ideas of the AfD and other extremist parties, especially with regard to their economic policy, would soon ruin Germany as a business location.”
Customer note:
ROUNDUP: You read a summary in the economic overview. There are several reports on this topic on the dpa-AFX news service.
/jkr