Thomas Watts, Investment Analyst, abrdn, comments on the economic data releases this week;
“With a busy week coming up, economists will turn their focus to the continent today as Germany is set to grab all the achtung throughout the week.
“Being the Eurozone’s largest economy, German data usually takes on added significance and so news on the nation’s import prices, retail sales and especially overall business climate should really make an impact. Focussing on the business climate numbers, the data is so important as it acts as a leading indicator of economic health, with businesses reacting quickly to market conditions and changes in their sentiment being an early signal of future economic activity such as spending, hiring and investment. With the survey results falling on a monthly basis since May, many economists will be hoping the wurst has now passed.
“Germany will again make the headlines on Thursday, with preliminary Consumer Price Index (CPI) numbers coming to the fore, the best proxy for measuring inflation not only in Germany but also as a clue for how prices are reacting on the continent as a whole.
“Staying in Europe, we also have a bonanza of Spanish CPI on Thursday, accompanied by an interesting report from the European Central Bank (ECB). Releasing its Economics Bulletin, the bank will reveal the statistical data that their Governing Board evaluated when making the latest interest rate decision, providing detailed analysis of current and future economic conditions from the bank’s viewpoint. The data should of course take on added significance with the ECB choosing to effectively end their rate hike cycle next week.
“The week should end with a flurry of data from the US as the world’s largest economy releases its Gross Domestic Product numbers along with Unemployment Claim figures. With the US labour market still too robust for the Federal Reserve’s liking, the data could well set the tone for the coming weeks, as a data dependa
