Market Information Wednesday 17 August 2022

Consumer prices in the United Kingdom increased slightly more in July. This was shown on Wednesday by figures from the ONS statistical office. Prices increased by 10.1% year on year. A month earlier this was 9.4%. Economists expected an increase of 9.8% in July. On a monthly basis, prices increased by 0.6%, after an increase of 0.8% in June. The Bank of England still aims for an inflation rate of 2.0%.

Industrial production in the United States increased in July, thanks to strong production by the automotive industry, despite rising producer prices and supply chain disruptions. This was reported by the Federal Reserve on Tuesday. Industrial production, including the output of factories, mining and utilities, increased by 0.6% in July, compared with a month earlier. A growth rate of 0.3% had been expected beforehand, after a flat level in June. Earlier, a contraction of 0.2% had been reported for June. On an annual basis, growth was 3.9%. The automotive industry did relatively well. The production of motor vehicles and parts increased with 6.6%, after decreases in previous months. The rest of the manufacturing industry increased with 0.3%.

The Dutch labour market is historically tight. In the first quarter of 2021 there were still 56 vacancies per 100 unemployed. A year later it was 133 per 100 unemployed. In the second quarter, the pressure increased further. In April, May and June, 16,000 new vacancies were created and the average number of unemployed fell again, according to CBS figures. The record for vacancies and jobs was thus broken again. According to a third of the entrepreneurs, the shortage of personnel causes an increased work pressure among their employees. Especially in the sectors culture, sports and recreation, transport and storage, catering and trade, entrepreneurs experience extra work pressure, although this has an effect on all sectors.

The 6M Euribor decreased with 2 basis points to 0.75% compared to previous business day. The 10Y Swap increased with 5 basis points to 1.78% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.