Economic wrap - Westpac

Analysts at Westpac offered an economic wrap.

Key Quotes:

"The NY Fed Empire business sentiment index for Jan eased to 6.5, from a downwardly revised 7.6 in Dec. The detail was more constructive though, prices paid and prices received firmed as did the employment sub index.

NY Fed President Dudley sounded more balanced than his counterparts of late, noting even though the US economy is in good shape and approaching full employment inflation trends are “very subdued” and that the risks of a shift to much tighter policy are quite low. Governor Brainard noted that the Fed may hike faster if fiscal policy shrinks labour slack faster.

UK inflation jumped, core inflation printing +1.6% vs expectations for 1.4%. The German ZEW analyst survey was decent,  the current situation sub-index rising from 63.5 to 77.3, stronger than expected, the expectations sub index firmed too, from 13.8 to 16.6 but shy of expectations."