German factory gate prices contracted for a 26th consecutive month in September emphasizing the fragility of economic recovery in the Eurozone. Year-on-year producer prices fell 2.1 per cent, versus expectations of a 1.8 per cent dip. They had slipped 1.7 per cent in August. Germany is Europe's biggest economy, and one often assumed to be in relatively better shape than its neighboring countries. However signs of strain are emerging, with factory orders and exports falling. The German economy grew just 0.4 per cent in the three months to June, missing expectations of 0.5 per cent growth.
Mark Carney gave a speech yesterday and told the Treasury Select Committee that ‘the analysis is on the impact of EU membership on the ability of the bank of England to discharge its statutory responsibilities. The Bank of England is due to publish its findings today after investigating the potential impact a UK exit from the EU would have on the ability to steer the market. Carney will be giving a speech this evening at University of Oxford.
The number of housing starts issued in the U.S. rose more than expected in September, while building permits fell more than forecast. In a report, the U.S. Commerce Department said that housing starts rose 6.5% compared to last month’s previous figure.The report also showed that the number of building permits issued dropped by 5.0% to a seasonally adjusted 1.103 million units from August’s total of 1.170 million
American consumers, powered by an improving job market, are keeping the U.S. afloat as they continue to spend on big-ticket items such as homes and cars. A pickup in wage gains would give even more households the ability to save for a down payment, helping to sustain momentum in the housing industry.
18:00 – GBP : BoE’s Governor Carney speech