Global Economy Week Ahead: U.S. Wages, China PMI, Eurozone Inflation
February 25 2018 - 3:29PM
Dow Jones News
By WSJ Staff
This week features wage and price growth data from the U.S.,
purchasing mangers index readings from China, and a policy
statement from South Korea's central bank following the country's
quarter-on-quarter economic contraction at the end of 2017.
TUESDAY: South Korea's central bank releases a policy statement
after the country posted its first quarter-on-quarter contraction
since the global financial crisis. The surprisingly weak economic
performance in 2017's fourth quarter led economists and Bank of
Korea officials to support the case for a cautious stance on
central-bank policy, pushing the specter of raising rates later
into 2018.
Federal Reserve Chairman Jerome Powell is set to testify on
monetary policy before the House Financial Services Committee, his
first appearance on Capitol Hill since he was sworn in as the new
leader of the U.S. central bank this month. He is scheduled to
testify before the Senate Banking Committee on Thursday.
WEDNESDAY: Official and private purchasing managers index
figures from China on Wednesday and Thursday will provide an early
glimpse into the condition of the Chinese economy in February.
Economists said growth momentum may lose some steam as the Lunar
New Year, falling in February this year, led to a shutdown of
factories and services ahead of and during the holiday.
Brazil's central bank releases January fiscal data. In December,
Brazil's 12-month budget deficit was 7.8% of gross domestic
product, and total debt was 74% of GDP, both figures considered too
high for an emerging market. Economists expect some improvement as
the economy rebounded, boosting tax revenue. But a recent failure
to overhaul social security is adding pressure to the government
budget.
The U.S. Commerce Department publishes its second estimate of
fourth-quarter GDP. The initial reading, released in January,
showed the economy finally picking up steam after an unexpectedly
slow expansion since 2008. Synchronized global economic growth and
renewed investment spending by U.S. firms helped the country's
economy accelerate in recent quarters.
The eurozone economy is growing more rapidly than at any time
since the global financial crisis, but that has yet to translate
into an inflation rate the European Central Bank can live with.
February figures from the European Union's statistics agency are
expected to show that the pace at which consumer prices are rising
fell further below the ECB's target of just under 2%.
THURSDAY: The U.S. Commerce Department releases personal income
data for January. Analysts will be watching for further signs of
ramped-up wage and price growth that could raise the possibility of
faster-than-expected monetary policy tightening by the Fed. In
February, the stock market experienced its first intense bout of
volatility in years after the Labor Department released a jobs
report that suggested wages, and by extension inflation, were
picking up faster than expected.
(END) Dow Jones Newswires
February 25, 2018 15:14 ET (20:14 GMT)
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