Blog — 18 Apr, 2023
Insight Weekly: April 18, 2023
By Sarah Cottle
Today is Tuesday, April 18, 2023, and here’s your weekly selection of essential intelligence on financial markets and the global economy from S&P Global Market Intelligence. Subscribe to be notified of each new Insight Weekly.
In this edition of Insight Weekly, we take a close look at US bank deposits. Deposit outflow slowed to $38.30 billion during the week ended March 29 as deposits at small banks increased by $1.60 billion. The latest data showed a move toward stability after the initial banking turmoil. Nevertheless, the weekly deposit flows contributed to a notable drop so far in 2023. A funding squeeze has cranked up an already heavy pressure on bank deposit costs, raising expectations for further price increases and crunching down net interest margin forecasts. Average deposit costs across the industry increased by 90 basis points from the fourth quarter of 2021, just before the Federal Reserve started increasing rates, through the fourth quarter of 2022, according to S&P Global Market Intelligence data.
Global business activity accelerated to a nine-month high in March, according to the latest Purchasing Managers' Index survey data compiled by S&P Global from over 30,000 companies. Growth was driven by reviving service sector activity, which expanded at the fastest pace since December 2021. The latest data further allays fears of imminent recessions in leading economies, although concerns persist about the sustainability of the upturn, according to S&P Global Market Intelligence Chief Business Economist Chris Williamson.
The tally of US corporate bankruptcy filings with more than $1 billion in liabilities is on the rise in 2023, according to S&P Global Market Intelligence data, as companies battle elevated interest rates and persistently high inflation. Most corporate bankruptcy filings in recent years reported liabilities in the $1 million to $100 million range.
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Written and compiled by Roma Arora
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