US retail sales data for December pointed to continued robust consumer spending at the end of the year. While the headline retail sales print came in below expectations, rising 0.4% m/m in December, and weaker than the upwardly revised 0.8% growth seen in November, underlying trends still look strong. In particular, growth in control-group sales – the data used to estimate GDP - saw their biggest advance in 3 months, rising 0.7% m/m.
US initial jobless claims in the week ending 11 January, rose 14k to reach 217k, slightly higher than the 210k expected by markets. Claims are anticipated to rise in coming weeks, in part because of Californian wildfires and measures expected to be taken by Boeing to reduce costs.
UK GDP rose 0.1% m/m in November, up from a 0.1% contraction in October but below consensus expectations for growth to rise to 0.2%. The growth observed in November was concentrated in the services sector, with some activity potentially having been put on hold in October ahead of the budget statement. UK Industrial production fared worse than expected in November, falling a further 0.4% m/m after declining 0.6% the month prior.
Chinese GDP grew 5.4% y/y in the final quarter of 2024, the fastest pace of growth in 6 quarters. That leaves annual growth at the government’s 5% target. The quicker growth seen at the end of the year was likely driven by increased stimulus measures introduced in September. Other data also points to a stronger final month of the year, with December industrial production rising 6.2% y/y and retail sales growing 3.7% y/y. The real estate sector, however, continues to act as a drag on the Chinese economy with property investment recording its worst annual performance since records began in the late 1980s, contracting 10.6%.
UAE-based renewable energy company, Masdar, has signed an agreement with the Philippines Department of Energy to invest USD 15bn in renewable energy projects. These are set to include the development of solar, wind and battery storage systems by 2031.
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