US/European economy

 In July, the consumer price index (CPI) (the core CPI excluding food and energy) slowed down for the first time in four months (up 5.9% from the previous year and up 0.3% from the previous month). Energy fell for the first time in three months (-4.6% mom), and the composite index (unchanged mom) showed a marked slowdown in inflation. The July producer price index (up 9.8% y/y and down 0.5% mom) also showed a sharp drop in energy, leading to a marked easing of inflationary pressures (down 9.0% mom).

 According to the University of Michigan's August consumer survey, the consumer confidence index (preliminary value of 55.1, up 3.6 points month-on-month) rose for the second consecutive month. Although the status quo index fell, the expectations index rose sharply. Consumer expectations for inflation over the next year (5.0%) were the lowest in six months, driven by lower gasoline prices. This figure will rise for the first time in 2 months over the next 5 years (3.0%), suggesting that medium-term inflation expectations will persist.

 Eurozone industrial production (+0.7% m/m) rose for the third consecutive month in June. In addition, last month's output also revised sharply. Production levels were the highest since December 2017. Looking at the breakdown, capital goods, which had declined until April, rose sharply for the second month. However, non-durable consumer goods, which continued to grow, fell sharply.