Thomas Watts, Investment Analyst, abrdn Portfolio Solutions, comments on the economic data releases this week;
“With the January sales furore now a distant memory, the beginning of the week gives us a chance to check up on how the High Street is faring.
First off, today will see the British Retail Consortium release its Realised Sales figures, detailing changes in monthly retail sales. The data is so well respected and has such an effect on retail stocks due to the breadth of its survey, with 125 retail and wholesale companies taking part, all asked to rate the relative level of current sales volume.
The British Retail Consortium will then help us gauge the wider economy further by releasing its annualised Shop Price Index numbers, showing us the change in the price of goods purchased at its members’ shops. Although just covering those retailers that belong to its consortium, the figures act as a good measuring stick for the government’s official figures, which are usually released 10 days later.
Attention should then switch towards the US, as yet more consumer centred data comes our way, this time, in the form of consumer confidence data. Nearly all economic activity starts with consumer spending and so how the average person on the street is feeling is vitally important. The data derives from a survey of 3,000 households, all asked to rate the relative level of current and future economic conditions including labour availability, business conditions and their overall economic situation.
Our comprehensive tour of the global economy will also take us to Asia during the second half of the week, in particular China. With China’s economic recovery from Covid being patchy at best, Thursday’s Purchasing Manager Index data, focussing on the nation’s far larger manufacturing sector will make for interesting reading. The data not only helps understand how China’s economy is faring but also gives us an insight into the global state of play. China is known as the “workshop of the world” and so any slowdown in global demand should be reflected within in the figures.”
