Summary
United States: Economic Growth Sturdy Ahead of the January FOMC
- Davos delivered news of cooling trade tensions thanks to a deal for the U.S. to gain greater access to Greenland. Meanwhile, solid consumer spending during October and November despite slower income growth suggests economic growth remains on a positive trajectory.
- Next week: Durable Goods (Mon.), FOMC Meeting (Wed.), Trade Balance (Thu.)
International: Cross-Currents Emerge in China’s Economy
- December activity put a brighter spotlight on how sluggish consumer activity has been, yet industrial production and manufacturing remain resilient across China’s economy. As these cross-currents persist and authorities offer little in terms of policy support, we expect the Chinese economy to soften relative to last year and for growth prospects to dwindle over time.
- Next week: Bank of Canada Policy Rate (Wed.), Brazil Selic Rate (Wed.), Central Bank of Colombia Rate (Fri.)
