Looking ahead, next week’s US jobs report will be the clear standout on the economic front, offering key clues about how healthy the labor market is. The federal government’s December jobs report is set to be released this Friday. Analysts and investors alike will continue to watch it as one of the leading indicators. Deutsche Bank’s economists emphasized the significance of this report, stating, “In the US, the key event will be the December jobs report due Friday.”
The report is expected to show a gain of around 50,000 nonfarm payrolls, representing tepid job growth. The jobless rate is forecast to drop a tick to 4.5%. Growth in hourly earnings is expected to tick up to a 0.3% month-over-month rate. This increase is especially significant given recent trends in wage inflation and overall economic activity.
Along with the US data, a number of European countries will be releasing key economic indicators as well. Germany and France will release their numbers on Tuesday, with a Eurozone-wide release to follow Wednesday. This will help set the stage to understand what these economic conditions all across Europe look like.
The other notable release in Europe will be Thursday’s German factory orders figures. Then on Friday, we’ll be getting a report on industrial production and the trade balance. These numbers will shed light on the state of Germany’s industrial economy. They will illustrate the country’s external trade patterns, which are extremely important for a country that is the Eurozone’s economic engine.
With the spotlight back on inflation, Switzerland, Sweden, and Norway will all print consumer inflation during the week. These reports are very important for gauging developing inflationary pressures within these economies and will be very influential over changing monetary policy directions.
Deutsche Bank’s economists noted the importance of these European figures, stating, “Moving on to Europe, the focus will be on the preliminary December CPIs in the Eurozone.” That’s why this report is so important. It would likely impact the European Central Bank’s monetary policy stance and interest rate deliberations in the ensuing months.
In Asia, the economic calendar will be equally eventful. On Friday, China will report on CPI and PPI. At the same time, Japan is to release January wage data on Wednesday. These five indicators will provide an early warning of the state of economic momentum across Asia in the face of mounting global uncertainties.