This week features the Federal Reserve's beige book report on economic conditions in the U.S., interest-rate decisions from the Bank of Canada and Bank of Korea, and a reading on China's fourth-quarter gross domestic product.
WEDNESDAY: The Federal Reserve publishes industrial production -- or factory, mines and utilities output -- data for December. In November, industrial production rose slowly, with most of the growth stemming from post-hurricane recovery in oil and gas extraction. Analysts predict solid industrial production growth in December because of a strong global economy and a weaker U.S. dollar.
Continue Reading Below
The Fed also publishes its beige book report on U.S. economic conditions. In the Fed's most recent releases, the report showed economic activity grew at a solid pace, despite disruptions caused by hurricanes that affected the Southern and Eastern U.S. in mid-2017. The coming report is likely to show a robust U.S. economy after two consecutive quarters of gross domestic product growth above 3%.
The Bank of Canada releases an interest-rate decision and monetary policy report, following a report last month showing the country's GDP unexpectedly stalled in October because of a decline in the energy sector. This could complicate efforts to raise rates, but other economic indicators point to a more rosy Canadian economy. A recent central-bank report found businesses are planning to ramp up investment and hiring, and Canada's jobless rate recently fell to a four-decade low.
THURSDAY: Bank Indonesia releases a policy statement after keeping its rates unchanged at its December policy meeting. The Southeast Asian economy had been growing slower than expected and saw its currency lose strength after an August rate cut, calling into question the bank's ability to raise rates now.
The Bank of Korea also releases a policy statement. At the end of last year, South Korea became the first major Asian economy to raise its main policy rate since the Fed started increasing U.S. rates. The economy experienced faster-than-expected growth in 2017 and saw an uptick in inflation.
China releases a series of economic readings, including GDP for the fourth quarter and retail sales and industrial output for December (release time is Wednesday evening in the U.S.) China's economy expanded at a robust 6.8% pace in the third quarter, as traditional growth drivers such as manufacturing and exports gained steam. Economists except 6.7% GDP growth for the fourth quarter. Retail sales and industrial production also are expected to edge lower.
(END) Dow Jones Newswires
January 14, 2018 15:14 ET (20:14 GMT)