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  • Moving on from events in the Ukraine/Washington/Brussels Euro service sector sentiment should show overall strength. Economic contraction is expected in France and Italy while Germany powers ahead (note, though, that French manufacturing sentiment was better than expected).
  • Revised Euro GDP is not a major focus, but keep an eye out for the deflator with periodic investor concerns about "bad" deflation in the Euro area. The UK actually has some deflation (BRC shop prices fell 1.4%), but this is seen as a good thing (enhancing consumer spending power).
  • US non-manufacturing sentiment will be impacted by the construction sector (badly affected in February by weather) and this gives rise to our cautious 52.5 forecast. The Beige Book from the Fed may be more useful in giving economic anecdotes away from the weather effects.
  • Australian Q4 GDP was above the RBA target at 2.8% yoy. Domestic demand was weaker, although this owes much to the ending of a capital spending boom. The domestic demand deflator did pick up a little, suggesting the economy errs towards inflation rather than deflation.

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