Latest indicators
In Germany, the construction PMI improved somewhat but remains at a very low level. Retail sales in the euro area declined significantly in December -as expected- but the November number was revised upwards. In France, employment was stable in the fourth quarter but the consensus had expected an increase of 0.3%. In the UK, fourth quarter GDP was stable, in line with expectations. The construction PMI edged down. China consumer price inflation rose in January to 2.1% (1.8% the month before). The EcoWatchers’ survey picked up in Japan, in particular with respect to the outlook, where the assessment improved far more than anticipated. In the US, University of Michigan sentiment improved thanks to a better assessment of current conditions. The assessment of the outlook was down slightly. Short-term inflation expectations were up but the longer-term expectations were stable.
Coming indicators
The European Commission will publish its new economic forecasts. For the Eurozone we will have an updated estimate of 4th quarter GDP growth as well as the change in employment in the 4th quarter. France and the United Kingdom will also publish labour market data. Inflation data will be released in the United States (CPI and PPI) and the United Kingdom. The latter will also release data on retail sales. In the US we will also have data on housing as well as the index of leading indicators.
