How Do Commodity Prices Affect Growth?
Commodity prices are set to stabilize since last quarter and expected to recover in 2017.
According to the World Bank’s January 2017 Global Economic Prospects report, global trade growth in 2016 was the weakest since the 2009 global financial crisis.
The global growth estimate fell to 2.3% in 2016 compared to 2.7% in 2015, with a slight fall in employment growth.
The world’s economy grew at a slower pace at the beginning of 2016 due to a lack of productivity improvement in developed and emerging economies.
The most important indicators for this week are the US consumer price index and the Eurozone consumer price index.
The US Consumer Sentiment Index improved in January 2017. It stood at 98.1 in January 2017 compared to 98.2 in December 2016.
US retail sales gave a strong performance in December 2016, rising 0.6% compared to the 0.2% rise in November 2016.
According to the EIA’s report on January 11, 2017, US crude oil inventories rose ~4.1 MMbbls (million barrels) for the week ended January 6, 2017.
Billionaire investor Marc Lasry believes that European (IEV) (VGK) (EZU) fundamentals and economic growth still need to improve.
According to data provided by Eurostat, the monthly Eurozone industrial production for November 2016 stood at 1.5% as compared to a 0.1% rise in October 2016.
In this series, we’ll take a look at the Eurozone’s industrial production for November 2016, the Eurozone Sentix investor confidence for January 2017, and US crude oil inventories for the week ended January 6, 2017.
The most important indicator this week is the Economic Sentiment Index, which shows the condition of the economy and investor confidence.
The ADP National Employment Report for December 2016 came out on Thursday, January 5, 2017. It indicated a weaker improvement in private-sector employment.
The US December 2016 jobs report indicates a weaker improvement in the labor market. Non-farm payroll added 156,000 jobs compared to 204,000 in November.
According to the EIA’s report on January 4, 2017, US crude oil inventories fell ~7.1 MMbbls (million barrels) for the week ended December 30, 2016.
The Japan Manufacturing PMI (Purchasing Managers’ Index) stood at 52.4 in December 2016 compared to 51.3 in November.
According to a report by the National Bureau of Statistics of China, the China Manufacturing PMI was 51.4 in December 2016 compared to 51.7 in November.
The Canada Manufacturing PMI (Purchasing Managers’ Index) stood at 51.8 in December 2016 compared to 51.5 in November.
The final Eurozone Manufacturing PMI (Purchasing Managers’ Index) stood at 54.9 in December 2016 compared to 53.7 in November.
The India Manufacturing PMI (Purchasing Managers’ Index) stood at 49.6 in December 2016 compared to 52.3 in November.