The UK Economy ends 2014 with its best year since 2007 with waning momentum, the economy grew 2.6 percent in 2014. GDP slowed more than economists forecast at the end of 2014 as production and construction shrank, countering strength in consumer demand. The 0.5 percent quarterly expansion was the slowest in a year and compared with 0.7 percent in the previous three months.
While it was also less than the 0.6 percent forecast, it still marked the eighth straight period of expansion and capped the economy’s best year since 2007. A leading economist at the (ONS) Office for National Statistics, said the cooling was mainly due to “erratic" sectors including construction and mining. Stating – It was too early to say if there’s a general slowing-down of the economy.
In the US Core Durable Goods Orders for business equipment unexpectedly fell in December for a fourth month, signalling a global growth slowdown is weighing on American companies. Bookings for non-military capital goods excluding aircraft dropped 0.6 percent for a second month. Demand for all durable goods -- items meant to last at least three years -- declined 3.4 percent, the worst performance since August.
Slackening demand from Europe and some emerging markets is probably weighing on orders, making companies less willing to invest in new equipment. However brightening American consumer attitudes are leading to gains in purchases of big-ticket items such as auto mobiles and appliances that can ripple through the economy and underpin manufacturing.
U.S. consumer confidence improved significantly in January, hitting the highest level since 2007. The Index now stands at 102.9, up from 93.1 in December – (up 9.8 points)This can be put down to Americans feeling better about current economic conditions, including the job market. They are also more optimistic about business conditions over the next six months.
Consumer confidence has been rising as the economy improves. Employers added nearly 3 million jobs last year, the most since 1999. The unemployment rate last month tumbled to a 6-year low of 5.6 percent.
The economy grew from July through September at a 5 percent annual rate, the fastest in 11 years. Also Adding to improving spirits: Gas prices have plunged to $2.04 a gallon on Tuesday from $2.32 a gallon a month ago. Despite positive news from the US consumer confidence and New home sales the negative news of Core Durable Goods Orders still forced the USD to weaken yesterday against most of its peers.
USD - 19:00 : US Federal Reserve Interest Rate Decision expected to remain unchanged at 0.25%
USD - 19:00 : US Federal Reserve monetary policy statement
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