This time we are expecting more sales in retail products mainly on holiday selling. It is generally observed that core retail sales increases in the month of Christmas. We are expecting Core retail sales near to 0.4% for last month.
Retail Sales is expected to fall on dropped vehicle sales. Total vehicle sales fell to 15.4 million from earlier 16.4m that was highest since the sales of March 1, 2007. We are expecting retail sales near to 0.1% for last month.
Producer Price Index is likely to advance on increased energy commodity prices. S&P GSCI Index for energy commodities gained near to 15 points in last month. Agricultural commodity prices were marginally down during last month as S&P GSCI Index for agricultural commodities dropped around 9 points. Overall the PPI is expected to remain near to 0.4%.
Consumer Price Index is expected to remain unchanged at 0.2%.Slight increase in manufacturing prices from 52.5 to 53.5 is not likely to bring major change in CPI as trade deficit has narrowed by $5.9 billion on increased export of goods and services by $1.5 billion and $0.3 respectively.
Unemployment Claims may drop further on improving economy. Manufacturing and Service industry has added more jobs that will reduce the unemployment and fall numbers of people filing for claims. In manufacturing industry employment index improved by 0.4 percentage points while in service industry the employment index improved by 3.3 percentage points from November to December. We are expecting claims to drop by 5k to 7k.
Manufacturing Index for Philadelphia Federal Reserve District may advance to 8.2 as exports increased by $1.7 billion. Overall Manufacturing PMI has expanded to 57.0 i.e. 0.2percentage point more than previous, mainly on growing new orders by 0.6 percentage points, employment by 0.4 percentage points.
Building Permits in last two months boosted up to 1.03m and 1.01m respectively. Falling job cuts for last two months, large number of job openings and improving earnings may keep real estate in demand. Now, consumers are more confident on spending as their earnings are becoming valuable with strengthening USD. This month we are expecting building permits to remain near to 1.01m.
Consumer Sentiment is expected to improve at 83.2. Fed stimulus cut stronger the USD made stock market rally in December end shows increased risk appetite of investors and their belief in the economy.