< Back to Trader Blog Articles

GDP, Wages, Inflation and Growth

06744 CC Trader Talk V2

The Week Ahead

The focus next week is on economic growth and price trends for major economies, with a number of countries releasing third quarter GDP figures as well as inflation data. Meanwhile, UK wage and inflation statistics will be key data releases for guidance on Bank of England policy. UK investors are also expecting half year earnings from Vodafone and REITs British Land and Land Securities. In the US consumer resilience will be assessed through updated retail sales data. Moreover, Earnings season in the US is all but over, but we have Cisco still to come. Other key data highlights include Chinese fixed investment, retail sales and factory output.

Europe and GDP

October’s Price Manager Index Indicated a solid Eurozone growth spurt at the start of the fourth quarter, alongside higher inflationary pressure. This now has to be backed up by the official data to confirm the positive developments. For this reason the Euro area third quarter GDP and inflation data for October will be closely monitored. Germany and Italy will be releasing their third quarter GDP figures.

United Kingdom and Wages

The UK inflation is widely expected to break the 3% level in October, meaning Bank of England governor Mark Carney will needs to give an explanation. However weaker growth of input costs indicated by October PMI surveys suggests that some pressure may soon come off selling price inflation. Official wage data will also be released, providing a key indicator of any likely future rate hikes, with further policy tightening contingent on signs that inflation is feeding through to higher pay.

United States and Inflation

The US will look to updated data on inflation and retail sale gauge price pressures and the resilience of the consumer. There are indications of a drop in inflationary pressures since hurricane-related surges seen in September. PMI surveys showed inflationary pressures eased at the start of the fourth quarter.

Japan and the Growth Momentum

Recent PMI data indicated that the Japanese economy lost some growth momentum in the three months ending September, although the latest survey signalled a strong start to the closing quarter of 2017. Important data releases for Japan are the publication of GDP figures, the industrial production and producer inflation.

The Calamatta Cuschieri Traders Blog is available daily on CC WebTrader. Other market coverage including coverage of the International Bond Markets is also available.

The information provided on this website is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Similarly any views or opinions expressed on this website are not intended and should not be construed as being investment, tax or legal advice or recommendations. Investment advice should always be based on the particular circumstances of the person to whom it is directed, which circumstances have not been taken into consideration by the persons expressing the views or opinions appearing on this website. Calamatta Cuschieri & Co. Ltd. (CC) has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website. You should always take professional investment advice in connection with, or independently research and verify, any information that you find or views or opinions which you read on our website and wish to rely upon, whether for the purpose of making an investment decision or otherwise. CC does not accept liability for losses suffered by persons as a result of information, views or opinions appearing on this website.
This website is owned and operated by Calamatta Cuschieri & Co. Ltd (Co. Reg. No. C13729) of 5th Floor, Valletta Buildings, South Street, Valletta VLT 1103, Malta. CC is licensed to conduct Investment Services in Malta by the Malta Financial Services Authority.