From the UK, yesterday, only minor importance GfK Consumer Sentiment data was released. British consumer morale rose for a second month in a row in January to hit its highest level since last summer, but households remain pessimistic about the outlook for the country's economy, a survey showed on Friday. Market research firm GfK said its overall consumer sentiment indicator rose to +4 in January from +2 in December, stronger than a median forecast of +1 in a Reuters poll of economists. "UK consumers remain resiliently bullish this month with no sign of the January blues denting their view on the state of their personal finances for both the past year and also for the rest of 2016," Joe Staton, Head of Market Dynamics at GfK, said.
In the US session,
GDP, Chicago
PMI and Revised Consumer Sentiment figures were published.
Real gross domestic product increased at an annual rate of 0.7% in the fourth quarter of 2015, missing forecasts on 0.8% increase. In the third quarter, real GDP increased 2.0%. The increase in real GDP in the fourth quarter primarily reflected positive contributions from personal consumption expenditures (
PCE), residential fixed investment, and federal government spending that were partly offset by negative contributions from private inventory investment, exports, and nonresidential fixed investment. Imports, which are a subtraction in the calculation of GDP, increased.
The University of Michigan final index of sentiment dropped to 92 from 92.6 in December, backtracking from a preliminary January reading of 93.3. The median projection in a Bloomberg survey called for 93. “Most of the downward revisions that occurred in late January were due to stock market declines, reflected in the erosion of household wealth as well as weakened prospects for the national economy,” Richard Curtin, director of the University of Michigan consumer survey, said in a statement.
The Chicago Business Barometer bounced back sharply in January, increasing 12.7 points to 55.6 from 42.9 in December, the highest pace of growth in a year. Analysts were expecting smaller incline to 45.6. The latest increase followed extreme weakness in the fourth quarter, with the Barometer averaging 47.7, the weakest quarterly growth since Q3 2009. The three month trend remained depressed at 48.7, up only slightly from 47.7 in December.
Monday's session will bring UK Manufacturing PMI data. Analysts are anticipating no change. In the US session, also, Manufacturing PMI figures are scheduled for a release. Slight increase to 48.6 is forecasted.
Figures to watch:
Manufacturing PMI (Monday 10:30)
ISM Manufacturing PMI (Monday 16:00)
