DID YOU KNOW?

US manufacturing output fell 1.5% year-on-year in October, its weakest month since December 2015. Could a US manufacturing recession cause such a drag that even well-performing sectors like housing get sucked down as well? The good news is that these production numbers look like a nadir, made worse by a now-resolved 40-day strike at GM, while there has been limited contagion to the rest of the economy.
As the US-China trade war escalated last year, US manufacturers sold less stuff and excess inventory began to pile up in warehouses. In response, US firms trimmed output and the build-up stopped. Based on past cycles, this stabilization in the inventory-to-sales ratio suggests that manufacturing output will not need to fall further.

 

DID YOU KNOW?

UK new properties coming to market fell by 14.9% compared with November 2018, the largest year-on-year drop since August 2009 and came as property prices fell by 1.3% compared with the previous month. This appears to be driven by the continued BREXIT uncertainty. (Marketwatch)