Blackfinch Spring VCT PLC has provided a weekly market update, summarizing global events. In the UK, inflation, as measured by the Consumer Price Index (CPI), fell sharply from 6.7% in September to 4.6% in October, beating economists' predictions. Core CPI, which excludes certain items, rose 5.7% in the 12 months to October. UK retail sales declined by 2.7% year-on-year in October, indicating a potential high street recession for the Christmas period. Nationwide reported an increase in residential mortgage accounts in arrears, and the average UK house price fell 0.1% in the 12 months to September.
In North America, US CPI inflation slowed to 3.2% in October, and core CPI also decreased. US industrial production declined by 0.6% in October, with strikes at major carmakers impacting the sector. Initial jobless claims increased, suggesting the US labor market is normalizing. US retail sales fell 0.1% in October, the first drop since March 2023.
In Europe, Eurozone headline inflation for October was confirmed at 2.9% year-on-year, the lowest since July 2021. The European Commission lowered its forecast for 2023 economic growth to 0.6%. Eurozone industrial production shrank 1.1% month-on-month in September.
In Asia, preliminary estimates show that Japanese economic growth contracted by 0.5% quarter-on-quarter in Q3. Business investment contracted, and consumption and exports remained stagnant.
This market update provides insights into key economic indicators and trends in various regions, allowing investors to stay informed about global events.