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Global Economy Week Ahead: China GDP, U.K. Inflation, Fed's Beige Book

15 Oct 2017 7:00 pm
By WSJ Staff 

This week is packed with economic readings in the West, from trade in the European Union and inflation in the U.K. to industrial production in the U.S. In Asia, China will release figures on gross domestic product, while Indonesia's central bank makes another monetary policy decision after recent interest-rate cuts.

MONDAY: Eurostat releases international trade data for August. Most of the recent indicators from the eurozone economy have pointed to a continuation of the robust economic growth it enjoyed in the first half of the year into the second. But as the European Central Bank approaches a key decision on the future of its bond-buying program, a question remains: Has the euro's appreciation this year crimped eurozone exports? Figures for August will help answer that question. A gain in exports would provide comfort for policy makers as they prepare to scale back some of the stimulus they are providing to the economy.

TUESDAY: The U.S. Federal Reserve releases industrial production figures for September. August's 0.9% fall in production, which was the largest one-month decline since May 2009, was an early sign of economic disruptions from a severe hurricane season. September's reading could show the full force of three hurricanes that battered the Southern and Eastern U.S.

Amid increasingly hawkish signals from some Bank of England officials, whose patience with the above-target inflation appears to be wearing thin, markets will pay close attention to figures on U.K. inflation. Economists polled by The Wall Street Journal expect that price growth -- spurred by sterling's steep depreciation in the wake of the Brexit vote last year -- accelerated to 3% in September, its fastest in more than five years, strengthening the case for a rate increase in the not-too-distant future.

WEDNESDAY: The Federal Reserve releases its beige book report on U.S. economic conditions. The Fed's most recent release, in September, showed economic activity grew at a measured pace across the country even though employment growth slowed somewhat in July and August. A glowing report would be more fodder for the Fed as it begins tightening monetary policy, but the beige book is likely to show the effects of recent hurricanes, which could make a clear economic reading difficult.

THURSDAY: China releases third-quarter gross domestic product data (release time is Wednesday evening in the U.S.). China's economy steamed along in the second quarter, beating forecasts and matching the 6.9% expansion in the first. Economists expect third-quarter growth to tick down to 6.8%.

Bank Indonesia releases a policy statement after the central bank cut interest rates for the second straight month in late September. Central bankers in the country were attempting to resuscitate growth in Southeast Asia's largest economy ahead of any further rate increases by the Federal Reserve.

(END) Dow Jones Newswires

October 15, 2017 15:00 ET (19:00 GMT)

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