Retail Sales Weaken in January, according to data from BRC
The “unofficial” retail sales figures for January have been released by the British Retail Consortium (BRC). According to the figures, overall sales increased by 4.2% rather than the 6.9% seen in December. The accuracy of the statistics is impacted by the BRC’s figures not accounting for inflation. There are no other significant UK data releases anticipated today, so all eyes will be on the Friday GDP numbers for December and Q4.
Powell Expresses Concern Over the Speed of the Economic Recovery
Jerome Powell, the chairman of the Federal Reserve, said this week that there is still “more work to be done” in terms of the recovery of the economy. He did admit that inflation had “eased considerably” though. Investors are interested to see Powell’s response to the US jobs data from last Friday, which demonstrated excellent monthly job growth and a record-low unemployment rate. The December trade report, the only significant US data release today, is anticipated to reveal a worsening of the deficit to around $68 billion.
In December, German industrial production fell.
German industrial production for December decreased by 3.1%, as reported today, pointing to a dismal year-end for the nation. Inflation forecasts for the next one and two years have decreased, according to a new study, even if the rate is still high and beyond the desired 2% level. Villeroy and Schnabel of the European Central Bank are scheduled to appear at different events. Investors are anticipating confirmation of a potential 50 basis point increase at the March policy meeting and the possibility of more tightening in Q2.