Economic Roundup: Week of November 12, 2012

Nearly all of the news out of Europe over the last week has been negative. European Union (EU) forecasts for economic growth for the next two years were downgraded more than expected, and EU officials warned of greater downside risks. In addition, German economic growth data fell short of consensus forecasts. Greek leaders passed a series of austerity measures required to receive additional aid, but widespread riots and protests took place during the vote. Concerns about Europe have caused investors to shift funds to safer assets, including US mortgage-backed securities (MBS), and this has been favorable for mortgage rates.

The most significant economic data this week will be the monthly inflation reports. The Producer Price Index (PPI) focuses on the increase in prices of “intermediate” goods used by companies to produce finished products and will come out on Wednesday. The Consumer Price Index (CPI), the most closely watched monthly inflation report, will come out on Thursday. CPI looks at the price change for those finished goods which are sold to consumers. In addition, Retail Sales will be released on Wednesday, along with the detailed FOMC Minutes from the October 24 Fed meeting. Retail Sales account for about 70% of economic activity. Industrial Production will come out on Friday as well. Investors also will be waiting for news about whether Greece will receive its next scheduled round of European aid.

November 13, 2012 by · Leave a Comment

About James

James A. Williamson is currently the Sr VP of Sales Development for Shelter Lending Services (formerly Fairfield Mortgage). James joined Shelter in 1994 and was the company's top Loan Officer in GA for 20 straight years helping over 2500 families finance their homes. James now oversees an incredible group of Loan Officers in Atlanta while further building Shelter's Atlanta business.

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