Macro data to watch: UK unemployment rate, US CPI
In addition to central bank decisions, the market is also anticipating a set of macro-economic data throughout the week.
In the UK, the unemployment rate is anticipated to rise to 4.3% in October, which would set a new high since September 2021. UK monthly GDP should have contracted by 0.1% in October - and GfK Consumer Confidence figures are seen as rising to -21 in December. In the US, the Consumer Price Index (CPI) is expected to rise by 3.1% in November year-over-year, one notch lower than in October, while core CPI growth is expected to remain at 4%. IGTV’s Angela Barnes has this round-up.
(AI Video Transcript)
UK job market
This week in the UK, there are a few important things happening that could affect the country's economy. On Tuesday, the unemployment rate is expected to go up to 4.3% in October. This means that more people might be struggling to find jobs, which is not good news for the job market.
UK GDP
On Wednesday, the monthly gross domedtic product (GDP) (which measures how much money the country is making) will be released, and it's predicted that the economy shrunk by 0.1% in October. This could mean that the economy is slowing down or having a negative impact on growth. The three-month average is expected to stay the same, which is not ideal.
But it's not all bad news. Industrial production, which measures how much stuff is being made, is forecasted to go up by 1.1% in October compared to the same time last year. This shows that the industrial sector is doing well and producing more things. This is a positive sign for the country's economy.
The GFK consumer confidence
And on Friday, the GFK consumer confidence data will be published. It's expected to show a slight improvement, with a rating of minus 21 in December. This is better than the previous month's rating of minus 24. In fact, this rating would match the highest level in the past 22 months, which happened in September. This means that consumers are feeling more confident about spending money, which is good news for businesses.
So overall, it's a bit of a mixed bag for the UK's economy. Some things are not looking great, like the rising unemployment and shrinking GDP. But there are also positive signs, like the increase in industrial production and improving consumer confidence. It's important to keep an eye on these things to get a better understanding of how the UK's economy is doing.
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