The Week In Hindsight, 27 December 2013
US data showed the economy rounding out the year on a high this week with personal spending increasing ahead of forecasts while the PCE inflation gage showed price pressures picking up within the economy at a rate of 0.1% month on month. This puts overall PCE inflation, the Federal Reserve’s preferred barometer, closer toward target at 1% on the year.
The strong performance in US data bodes well for the global growth outlook going forward; as a result, equities have continued to push northward. Despite the positive economic numbers of recent days, next week does see another round of data due for release.
Pending Home Sales and Consumer confidence feature in the diary over Monday and Tuesday while manufacturing numbers are expected from both the US and China on Wednesday and Thursday. With volumes likely to remain low until the following week, sharp price swings can be expected in response to any positive or negative developments here.