Fisher Investments Reviews: Last Week in Markets — September 14 - September 18

In the US, August industrial production remained flat m/m and increased 1.4% y/y. August manufacturing production declined 0.3% m/m and grew 0.9% y/y, lower than forecasts. August retail sales grew 1.2% m/m and 6.0% y/y, higher than consensus estimates. The Federal Reserve hiked interest rates by 25 basis points to 3.75%-4.00%. In our view, this move was largely anticipated by markets and is unlikely to materially influence economic growth, inflation trends or market performance on its own. For more, please see our 09/17/2026 commentary, “The Ineffectual Fed Hike.”

In the UK, August consumer inflation accelerated to 0.5% m/m and 3.1% y/y, both matching estimates. August core consumer inflation (which excludes energy, food, alcohol and tobacco) accelerated to 0.3% m/m and 2.6% y/y, both in line with expectations. The unemployment rate rose to 4.9% in July, slightly below consensus forecasts. August retail sales grew 0.5% m/m and 2.4% y/y, higher than consensus estimates. The Bank of England left their benchmark Bank Rate unchanged at 3.75%. In the eurozone, August consumer inflation accelerated to 3.2% y/y. August core consumer inflation (which excludes energy, food, alcohol, and tobacco) slowed to 2.4% y/y. July industrial production decreased 0.1% m/m and remained flat y/y.

In Japan, August consumer inflation slowed to 0.1% m/m and remained unchanged at 1.9% y/y. August core-core consumer inflation (excluding fresh food and energy) was 1.9% y/y. July industrial production decreased 0.2% m/m and increased 3.9% y/y. July retail sales grew 3.7% y/y, lower than consensus estimates. August imports and exports rose 28.0% y/y and 19.3% y/y, respectively, both above consensus forecasts. The Bank of Japan hiked interest rates by 25 basis points to 1.25%. In China, August industrial production increased 5.2% y/y, surpassing forecasts. August retail sales grew 1.1% y/y, higher than consensus estimates. August money supply (M2) increased 7.5% y/y. August loan growth increased 4.9% y/y, below expectations. The August unemployment rate rose to 5.3%, slightly above consensus forecasts.

The Week Ahead
The US, UK, eurozone and Japan report September Manufacturing and Services Purchasing Managers’ Indexes (PMIs). The US releases August new home sales and durable orders. The eurozone reports August money supply (M3).

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.