Back after a couple of days away - fortunately relatively insignificant days as far as data is concerned.
Today the focus is on the US, where the Uni of Michigan sentiment index rose 6.5% mom to the best since March, and topping June's immediate post-pandemic highs. But at 78.9, it is still far below last year's average of 96, and the l/t average for the series of 85.6. Getting better, but still glum, then.
More shocking was the $59bn qoq deterioration in the US 2Q current account to $170.5bn, with all active components of the balance deteriorating. Maybe the previous few months data on trade in goods and services should have alerted us to deterioration on this scale, but it didn't. But there's a silver lining: given the extraordinary blowout in the fiscal deficit (ie, govt dissaving) during the quarter, the current account soured only rather mildly. Which in turn means the private sector was saving, and saving exceptionally hard, during the pandemic. Firepower for the recovery.
