In 2020’s opening week, a handful of economic news nuggets could give clues about how the new year will unfold. New data will show how the factory sector is fairing in China, Europe and the U.S., and Federal Reserve meeting minutes could offer more clarity on the direction of monetary policy.
Tuesday
China’s official manufacturing purchasing managers index could show factory activity expanded for a second straight month in December. Economists surveyed by The Wall Street Journal expect the measure to tick down in but remain slightly in expansion territory, pointing to steady economic growth in the last quarter of the year. Those economists upgraded their forecasts for China’s fourth-quarter growth rate to about 6% following the announcement of a partial trade deal between China and the U.S.
Also, the Conference Board will release its consumer confidence gauge for December, giving better insight into how U.S. shoppers were feeling during the all-important holiday season.
Thursday
Manufacturing bore the brunt of the global economic slowdown during 2019, and surveys of the sector from around the world will be closely watched for signs of recovery as the year drew to a close. In the eurozone, the purchasing managers index is expected to record a sharper slowdown in December, but signs of stabilization are expected in parts of Asia and the U.S.
Friday
The Fed held interest rates steady at a December meeting and signaled it has no appetite to raise them soon. Details on how central bankers arrived at that call could be disclosed in the minutes of that meeting. After lowering rates at their three previous meetings, officials in December indicated comfort with leaving monetary policy on hold through next year while keeping an eye on risks posed by the global economy.
—Eric Morath, Liyan Qi, Paul Hannon
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