In the US, the final February S&P Global Services and Composite Purchasing Managers’ Indexes (PMIs) were revised higher to 52.3 and 52.5, respectively. Readings above 50 indicate expansion and the composite reading includes both services and manufacturing readings. February nonfarm payrolls increased by 275,000, exceeding expectations. The February unemployment rate rose slightly to 3.9%, higher than anticipated.
In the UK, the final February S&P Global Services and Composite PMIs were revised lower to 53.8 and 53.0. In the eurozone, the final February HCOB Services and Composite PMIs were revised higher to 50.2 and 49.2, respectively. The third estimate of Q4 2023 GDP was flat q/q and expanded 0.1% y/y, both in line with earlier forecasts. Q4 2023 imports rose 0.6% q/q while exports were flat q/q. January retail sales rose 0.1% m/m, but fell 1.0% y/y. The European Central Bank left monetary policy unchanged.
In Japan, the final February Jibun Bank Services and Composite PMIs were revised higher to 52.9 and 50.6. February bank lending increased 3.0% y/y. In China, the Caixin Services and Composite PMIs were both 52.5. February consumer prices increased 1.0% m/m and 0.7% y/y. January-February imports and exports rose 3.5% y/y and 7.1% y/y, respectively.
The Week Ahead:
The US reports February consumer prices, retail sales and industrial production. The UK reports January GDP, industrial production and unemployment, while the eurozone reports January industrial production. Japan reports its second estimate of Q4 2023 GDP. China releases February money supply (M2) and loan growth.
Source for all data cited is FactSet. This update constitutes the general views of Fisher Investments and should not be regarded as personalized investment advice. No assurances are made we will continue to hold these views, which may change at any time based on new information, analysis or reconsideration. In addition, no assurances are made regarding the accuracy of any forecast made herein. Global equities are represented by the MSCI World Index. The MSCI World Index measures the performance of selected stocks in 23 developed countries and is presented net of dividend withholding taxes and uses the maximum rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. Past performance is no guarantee of future results. A risk of loss is involved with investments in stock markets.