Daily update
Daily update
- Japan’s Tokyo consumer price inflation was stable and generally unexceptional. Japan’s consumer price inflation is entirely food and fuel—prices that the money printing of the Bank of Japan has little to no influence over. (Printing money demonstratively does not create inflation—printing too much money does). The Tankan survey of business sentiment disappointed the consensus a little.
- South Korean June export data showed the global supply boom continues—exports were stronger than expected. The story of global supply chains lying in shattered ruins around the world is media clickbait, but it is demonstrably not true. Instead, the question is increasingly what will happen to surplus supply as demand slows.
- Eurozone flash consumer price inflation estimates are due. German data was lower than expected, French data was as expected, and Spanish data was higher than expected. Italian data is also due today, and economists’ best approach is a non-committal shrug and an attempt to maintain the illusion of omnipotence.
- The US ISM manufacturing sentiment opinion poll is due. Recent academic research shows US corporate executives are increasingly partisan, and increasingly Republican. This may bias results. Economists tend to focus on what people do, not on what people say, if they want to understand the economy.
