Follow Paul Donovan

Beige is the new black

| Tags: Paul Donovan

  • Australian GDP came out largely as expected, and is not likely to provoke a monetary policy change from the Reserve Bank. However the division between export growth and the domestic economy continued to be very much in evidence.
  • Service sector sentiment from the Euro area will be watched with Spain perhaps attracting some attention after their poor manufacturing data. Euro area retail sales are more likely to demonstrate Teutonic discipline and resistance to frivolity than they are to embrace American hedonism.
  • The US service sector sentiment data should continue to point to expansion. New home sales data (which was subject to some supply side constraints earlier this year) may be affected by the federal government shutdown - which slowed income checks for new buyers.
  • The Fed's ever fashionable Beige Book of anecdotal evidence is due for release and is expected to show some slight improvement in the language. For expectations about the scaling back of quantitative policy, it may be anecdotes about bank lending (and credit demand) that matter most.

Listen to the audio version of this briefing.