U.S. Retail Sales Slumps In December 2018
Trade balance figures from China showed a somewhat better picture compared to the expectations. Data for January showed that exports in dollar-denominated terms rose 9.1% during the month while imports fell 1.5%. This left the trade surplus at $39.1 billion for the month.
The data was better than the expectations which showed that both imports and exports would fall.
The European trading session showed that Germany’s GDP for the fourth quarter remained flat against expectations of a 0.1% increase. Meanwhile, the Eurozone’s GDP kept unchanged at 0.2% for the same period.
The U.S. trading session saw the delayed retail sales report coming out. Data for December showed that retail sales fell 1.2% on the month in December while core retail sales fell 1.8%. The data stoked concerns of the downside risks, and the USD paired gains as a result.
Earlier today, China’s inflation report released earlier today during the Asian trading session showed that headline inflation grew at a slower pace of just 1.7% on the year in January. Producer prices index advanced just 0.1% on the year, marking a steady decline over the past few months.
More figures to close off the trading week
The European trading session will start with the release of Italy’s trade balance figures and will be followed up later in the day with the release of the Eurozone’s trade balance figures.
The UK’s retail sales report is due, and the data is expected to show a 0.2% increase in retail sales. This following a 0.9% decline in the month before.
The NY trading session will see the Empire State Manufacturing Index report coming out. Forecast point to an increase in activity with the index expected to rise 7.6 from 3.9 previously. Import prices data from the United States should fall by 0.2% marking the third month of decline following a 1.0% decline in the month before.
The industrial production figures should show a modest pick up with activity rising 0.1%, slightly slower than the 0.3% increase from the month before.
The data concludes with the release of the UoM’s consumer sentiment and inflation expectations data.
