Saturday, 16 August 2014

US factory output jumps but consumer sentiment falls

US economic data on Friday were mixed.

Factory production jumped 1.0 percent in July, helping to push total industrial production up 0.4 percent.

However, the New York Federal Reserve's general business conditions index fell to 14.69 in August from 25.60 in July.

The producer price index for final demand rose 0.1 percent in July as the cost of energy products fell, offsetting an increase in food prices.

However, the Thomson Reuters/University of Michigan's consumer sentiment index fell to 79.2 in August from 81.8 in July.

The UK economy continued to show strong growth though. A report on Friday showed that its economy grew 0.8 percent in the second quarter from the previous quarter and 3.2 percent from the previous year, the fastest yearly growth since the end of 2007.

Investors were in no mood to celebrate that achievement though as escalating tension in Ukraine sent stocks down on Friday. The S&P 500, though, managed to recover most of its early losses to end less than 0.1 percent down.

US Treasuries rose, with the yield on the 10-year note falling 6 basis points to 2.34 percent. However, gold fell 0.7 percent.

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