Eurozone softens to four-month low in December
Euro area consumer inflation eased to its lowest level in four months in December, driven by a sharper decline in energy prices and a slight moderation in services inflation, according to preliminary figures from Eurostat. Headline inflation slipped to 2%, aligning with the European Central Bank’s price stability target and signalling that the inflation surge of recent years continues to recede. Flash estimates showed annual price growth easing from 2.1% in November, in line with market expectations.
Core inflation, which excludes volatile food and energy components and is closely monitored by policymakers, fell to 2.3% year-on-year from 2.4% in November, its weakest since August.
On a monthly basis, consumer prices rose by 0.2% in December, after a 0.3% decline the previous month.
UK house prices at lowest level since summer
UK house prices weakened towards year-end as uncertainty weighed on housing market activity towards the end of the year. Data from the mortgage lender Halifax showed on January 8 a 0.6% decline in house prices for December.
The average property price dropped to £297,755 from £299,544 in November, marking the lowest price since June, and undershooting expectations of 0.2% monthly rise. Annual house price growth eased to 0.3% in December from 0.6% in November..
US manufacturing index unexpectedly edges lower in December
US manufacturing activity contracted further in December, reaching a 14-month low, amid declining new orders and rising input costs as the sector continued to bear the imprint of President Donald Trump’s import tariffs.
The Institute for Supply Management (ISM) survey on January 5 indicated that a recovery was unlikely in the near term, but economists were hopeful of a turnaround this year as Trump’s tax cuts took effect.
Manufacturing PMI slipped to 47.9 against the expectations of the index inching up to 48.3. The headline decrease was partly driven by a sharp drop in the inventories index, which fell to 45.2 in December from 48.9 in November.
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