Last Week In Markets: Mar 13 - Mar 17 2023

In the US, February retail sales fell 0.4% m/m and rose 5.4% y/y, missing expectations. Meanwhile, February industrial production was flat m/m while manufacturing production grew 0.1% m/m. February consumer prices increased 0.4% m/m and 6.0% y/y, matching consensus estimates. Core consumer prices (excluding food and energy) rose 0.5% m/m and 5.5% y/y in February. We think gradually easing inflation is likely to help sentiment throughout this year. For more, please see our 3/14/2023 commentary: “As Winter Wanes, Prices Continue to Cool.”

In the eurozone, January industrial production rose 0.7% m/m—above forecasts. February consumer prices increased 8.5% y/y, while core consumer prices (excluding energy, food, alcohol and tobacco) rose 5.6% y/y. The European Central Bank raised interest rates by 50 basis points. In the UK, data were light. Unemployment in the three months ending in January was unchanged from the previous period at 3.7%.

In Japan, January retail sales rose 0.3% m/m and 5.0% y/y. Final January industrial production fell 5.3% m/m and 3.1% y/y. February imports and exports rose 8.3% y/y and 6.5% y/y, respectively—both less than forecasts. In China, February industrial production increased 2.4% y/y. January/February retail sales (combined to prevent skew due to the Lunar New Year holiday) rose 3.5% y/y. February unemployment was 5.6%.

The Week Ahead:

The US, eurozone, UK and Japan release flash March manufacturing and services purchasing manager’s indexes (PMIs). The UK and Japan report February inflation data. The US reports preliminary February durable goods orders and new home sales. The UK posts February retail sales. The Federal Reserve and Bank of England meet separately to set their respective monetary policies.

Source for all data cited is FactSet. This update constitutes the general views of Fisher Investments and should not be regarded as personalized investment advice. No assurances are made we will continue to hold these views, which may change at any time based on new information, analysis or reconsideration. In addition, no assurances are made regarding the accuracy of any forecast made herein. Global equities are represented by the MSCI World Index. The MSCI World Index measures the performance of selected stocks in 23 developed countries and is presented net of dividend withholding taxes and uses the maximum rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. Past performance is no guarantee of future results. A risk of loss is involved with investments in stock markets.