Europe & UK share the spotlight
Quite a few announcements coming out later tonight with both Europe and the UK set to release a range of information.
From Europe, they are releasing German Final CPI & WPI, Italian Industrial Production, German ZEW Economic Sentiment, European Employment Change & ZEW Economic Sentiment. The CPI and WPI figures all help determine inflation levels within the economy, which also in turn reflects consumer spending habits. The Industrial Production data is important as it reflects the strength of the industrial sector within Italy. It’s especially vital as other sectors with the Italian economy still remain weak. The employment data is important as it reflects changes within the labour market within Europe. The Economic Sentiment data is an indication on business sentiment and business confidence.
Out of the UK, they are releasing quite a few pieces of data. This includes: CPI, PPI Input, RPI, Core CPI, HPI and PPI Output. All of these figures inflationary-related. As these figures rise, this means that prices are rising, which raises inflation. Inflation in moderation is good as they means increasing amounts of money are filtered throughout the economy, which can then result in economic growth.