U.S. Review
Gradual Improvement Remains the Name of the Game
• Retail sales rose 0.2 percent in December, following a downwardly revised print of 0.4 percent in November. A drop in auto sales held down the headline, but excluding autos and gasoline, sales rose 0.6 percent.
• After jumping 23.1 percent November, housing starts fell 9.8 percent. The trend remains solidly upward, and starts averaged 1.0 million units in the final quarter of the year
• Industrial production rose 0.3 percent in December despite a 1.6 percent drop in utilities output. Manufacturing output rose 0.4 percent on broad gains in nondurable goods industries.
Global Review
Did Global Growth Strengthen in Q4?
• There is mounting evidence that economic activity in the Eurozone continued to expand modestly in the fourth quarter while real GDP in the United Kingdom probably posted another strong gain in Q4.
• Despite the evident pick up in the British economy over the past few quarters, the Bank of England likely will keep rates on hold for the foreseeable future due to the recent decline in CPI inflation. In contrast, the central bank in Brazil hiked
rates again this week due to rising inflation.
Read the full report: Economic Research
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