The Gross Domestic Product report for the United Kingdom is due to be released tomorrow Tuesday 28 January 2014. This report will relate to the fourth quarter (Q4) of 2013. Currently, many experts believe that the GDP rate will rise significantly from that of the previous quarter. Analysts note that the UK has enjoyed a steady stream of positive fiscal reports over the past few months as the economy has picked up momentum, thus pushing itself out of the recession. This has included higher housing prices, job creation, and other indicators showing improvements aimed at boosting production.
Traders are advised to watch for increases in the value of the pound in trading against its rivals following the release of this report.
American Durable Goods Figures to be Released Tuesday
The Durable Goods Orders report for the US are set to be issued tomorrow Tuesday 28 January 2014. The report will cover the rate of orders for more expensive goods that fall outside of the day to day necessities. At this point, analysts do not expect to see any large increases in the level of orders following the Christmas season.
Readers are reminded that this report is meant to provide a clearer picture to economists on the state of consumers in the US, focusing on their feelings regarding their ability to purchase durable goods that are not generally considered as immediate or basic needs. These durable goods can range from products including televisions, cars, and other items that consumers may decide to hold off on buying until they are in a more stable economic position. As such, when observers are provided with a report that shows that the advance sales have risen, they can assess from this that more people are employed and are willing to engage in the economy.
Analysts note that while durable goods purchases differ from much of the Christmas gift shopping that was done in November and December of 2013, many of these more expensive goods were likely bought during this time. As such, they would have been ordered the in the previous month of November. Moreover, following the spending that was done during Christmas, it is unlikely that many consumers will be looking to make additional expenditures. On another point, while the job numbers in the US were up for November, the change in employment report showed that fewer jobs were added during December. This would point to a lower number of consumers looking to make large, long term buys until they are truly feeling secure in their place of employment, and assured of future income.
Traders are advised to observe the results of this report closely as it can be an important indicator of the movement of the US economy over the short to midterm.
US Consumer Confidence Report Expected for Tomorrow
The report detailing the level of confidence in the economy by US consumers is due to come out on Tuesday 28 January 2014. At this time, many experts have expressed their belief that the rate is unlikely to change significantly. The report will cover confidence levels for the current month of January 2014. Analysts note that the current level of confidence is relatively high, considering the movements made in the economy in recent months.
Analysts point to the lowest levels of unemployment in years and other signs that the economy is moving steadily out of the recession. However, while the job numbers that were posted in December 2013 for the previous month of November were impressive, the market has been unable to replicate them, bringing lower than expected figures for December 2013. This bit of rockiness in the job market will likely have had an effect in stunting growth and confidence in the economy. Readers are reminded that job security and the promise of future income are essential in improving the confidence levels.
Traders are advised to watch for shifts in the value of the USD following the release of this report.