Fisher Investments recaps the biggest market, political and economic news from last week, including US durable goods orders, eurozone retail sales, and UK Purchasing Managers’ Index (PMI) readings.
In the US, the final December Markit Manufacturing Purchasing Managers’ Index (PMI) was 57.7, missing estimates, while the final December Markit Services PMI was 57.6, higher than expected. PMI readings over 50 indicate expansion. Final November durable goods orders increased 2.6% m/m, slightly higher than anticipated. December nonfarm payrolls expanded by 211,000, below the consensus forecast, but the unemployment rate fell to 3.9% in December, better than expected.
In the eurozone, the final December Markit Manufacturing and Services PMIs were 58.0 and 53.1—with the manufacturing PMI in line with expectations but the services PMI slightly below expectations. Retail sales rose 1.0% m/m and 7.8% y/y in November, both higher than forecasts. In December, preliminary core consumer prices (excluding energy, food, alcohol and tobacco) rose 2.6% y/y, less than forecast but reaching the highest rate since March 2002. In the UK, the final December Markit/CIPS Flash Manufacturing and Services PMIs were 57.9 and 53.6, respectively—both above expectations.
In Asia, data were light. Japan’s final December Markit/Jibun Bank Manufacturing PMI was revised higher to 54.3. In China, the December Markit/Caixin Services PMI reading came in at 53.1, while the December Markit/Caixin Manufacturing PMI reading came in at 50.9.
The Week Ahead:
The US, eurozone and UK announce industrial production readings for November and December. The US also reports December retail sales and inflation data. Japan and China release December money supply figures. China also posts new loan growth and inflation readings. The eurozone reports unemployment data.