Quite a slowdown in credit growth during October, certainly compared to the rate we saw last year. While the trend for shadow sector deleveraging continues there was also quite a sharp slowing of bank loans. Corporate bond issuance remained muted while there was a pronounced deceleration in the ‘other’ category, which now encompasses local government bond issuance.
A rather disappointing first assessment of US productivity in the third quarter. Non-farm productivity registered the first qoq decline since the end of 2015. On the positive side the yoy rate still looks a reasonable 1.4%, compared to a 5-year average of 1.1%, but the trend still lacks much conviction. Really, we’re still flatlining at best. Labour costs were stronger than expected, rising at a 3.6% annualised rate in the non-farm sector overall. That’ll raise the heckles of the hawks that view the tight labour market as a risk.