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A data day

| Posted by: Paul Donovan | Tags: Paul Donovan

Eurozone fourth quarter GDP is due for release. Early data like this tells us little about the economy in any detail. The data is always revised. The big picture is that the euro area continues to grow above trend. There is no economic justification for bond buying by the ECB from these numbers.

French GDP data has already been released, showing strength at the end of last year. To some extent, this is catch-up. In nominal terms, the French economy has significantly underperformed the US, the UK and Germany since the financial crisis (it has outperformed Japan).

The Canadian who governs the Bank of England will testify to the UK parliament. No doubt questions on the UK's exit from the EU will be asked in the wake of a "secret" report stating the economically obvious (that the UK will be worse off outside the EU).

UK experimental data on earnings and employment is due. This has implications beyond the UK. With structural change in the global economy, understanding the labor market using old fashioned data has become less and less helpful. UK insights may apply elsewhere. The data may also help explain the resilience of the UK consumer.