Jackson Hole, ten PMI releases, and the BRICS summit. This week will be full of market movements, and we will be there to trade them. Get ready, and let’s roll!
American construction spending suddenly dives in December
In December, American construction spending suddenly declined because investment in both public and private projects decreased. It proves that the US economy lost momentum at the end of the previous year.
As the Commerce Department informed, construction spending slumped by 0.6% after an unrevised 0.8% ascend in November.
Market experts had foreseen construction spending would soar by up to 0.2% in December. The report extended the run of downbeat economic December data, which has come with housing starts, retail sales, home sales, and trade.
On a year-on-year basis, construction spending went up by 1.6% in December. It went up by 4.1% the previous year, which appears to be the weakest outcome since 2011. The publication of the December report was postponed by a five-week partial shutdown of the American government, which concluded on January 25.
December's dismal construction spending data could affect the government's fourth-quarter GDP estimate uncovered last Friday.
The government informed that the American economy shot up at a 2.6% annualized rate for the October-December period, speeding down from the third quarter's 3.4% tempo.
Spending on private construction projects went down by 0.6% in December having gone up by 1.3% in November. Moreover, investment in private residential projects went down by 1.4% having bounced off 3.4% in November. Apparently, the housing market has been suppressed by higher mortgage rates, costly building materials, land and also labor shortages. As for residential investment, it shrank by 0.2% last year.
Spending on private nonresidential structures, including power plants and manufacturing, tacked on by 0.4% in December having dived by 1.1% in November. As for spending on nonresidential structures, it went down in the third and fourth quarters.
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
Oil prices are rising while the US government is on the verge of shutting down. How will it affect the market?
US stock markets started falling, while the US dollar is rising. What to expect from
Oil prices are rising and Russia banned the export of its petrol. What's happening in the markets?