In Germany the import price index remained flat for the month of December with zero growth. This led the annual figure to decline to -2.3% for 2013. This figure is good for their exporters whose costs of goods have declined however but will also not help boost inflation as the costs of imported consumable goods had also fallen.
The British economy grew at the strongest rate in six years in 2013, having ended the year on a strong note as the recovery became more entrenched. Economic growth for the final quarter of 2014 came in at 0.7% in line with analysts’ expectations.
The UK's services and manufacturing sectors were the drivers of 0.7% growth in the fourth quarter, taking the annual growth rate to 1.9%, the strongest since 2007 before the financial crisis took hold.
Orders for durable goods slumped by 4.3% in December -- the biggest monthly fall since last July. Economists had expected that orders grew by 1.8% .December was a grim month weather-wise in the US with ice storms gripping almost the entire country, and has already been blamed for recent poor employment figures earlier this month.
The Richmond Federal Reserve's manufacturing index for January came in at 12 compared to expectations of a level of 13. But the January consumer confidence index hit 80.7, much better than the forecast 78.1. December's figure however was revised down from 78.1 to 77.5.
Following the weak durable goods numbers this will give the Federal Reserve something to think about at its two day meeting that started yesterday. After which they will then release their statement on Wednesday to determine if they are going reduce their level of quantitative easing.
Early this morning German consumer confidence for February came in at 8.2 significantly higher than Januarys figure of 7.7 .Nationwide reports that house prices rose by 0.7% in January, partly due to more first-time buyers entering at the lower end of the market. That pushed the annual house price inflation rate to 8.8%; its highest level since May 2010. At 12.15pm Bank of England Governor Mark Carney is making a speech to discuss their forward guidance program, current unemployment levels in the UK and the state of the economy.
This evening at 7pm we have the US Federal Reserve announce their decision to reduce on quantitative easing from US$75bn of asset purchases or keep it at current levels.
12.15pm – GBP – BoE Governor Mark Carney Speech.
19.00pm – USD – Fed Interest Rate Decision and Open Market Committee Meeting.