Service sector sentiment
- Euro area service sector PMI sentiment is scheduled, and is forecast to show further expansion (less contraction in France and Italy). The read through from the manufacturing data is not terribly direct however, as the export sector lent support to Euro manufacturing sentiment.
- Euro retail sales are expected to show a stabilising rather than an accelerating Euro area consumer. Core Euro area economies' consumer demand is important to determining the strength of the European recovery this year.
- US service sector sentiment is forecast somewhat stronger (we see a 54.0 reading). Weather does impact the service sector, but it is generally assumed to be less of a factor than for manufacturing. There are Fed speakers scheduled, but the Fed has been very "on message" about a scaled reduction of bond buying.
- The UK BRC shop price index was negative for the ninth consecutive month. This is generally seen as "good" deflation, enhancing household real incomes and encouraging spending. Japan meanwhile still contemplates "bad" deflation, with base wages falling for another month.
Listen to the audio version of this briefing.