We expect German factory orders to send another signal of solid GDP growth in Q1, as we forecast an increase of 0.4% m/m in March after it rose 0.6% m/m in February. This follows as the new order component of German manufacturing PMI was well above 50 in March.
In our view French industrial production for March could surprise on the upside, as the manufacturing PMI new orders rose by 4 index points in March and went above 50.
We estimate that US unit labour cost has increased 2.5% q/q in Q1, as data indicate a rise in compensation of employees.
Fed's Yellen testifies before the Congress's Joint Economic Committee. She is likely to reiterate the message that, while the economy is expected to recover following the weak Q1, there is plenty of slack in the labour market and inflation is far below the Fed's target. The Fed can thus remain patient before raising rates once the QE tapering is over later this year.
The Riksbank will publish a report on Swedish household debt today.
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