Economic wrap - Westpac

Analysts at Westpac offered an economic wrap.

Key Quotes:

"US jobless claims were 247k in the week to 7 Jan (vs 255k expected). Import prices rose 0.4% in Dec (vs 0.7% expected) while export prices rose 0.3% (0% expected). Fed speakers included Harker (3 hikes in 2017 appropriate), Evans (concerned about slow growth), Lockhart (hike path depends on the impact of fiscal changes), and Bullard (no need for dramatic hikes).

Economic Event Risks Today

NZ electronic spending for Dec is expected to rise by 1%, helped by post-earthquake activity.

China trade balance for Dec is scheduled today, exports expected to fall and imports to rise.

US retail sales have disappointed of late. A better outcome is likely in December, though not as strong as confidence indicators would have you believe. Annual growth for producer prices (PPI) is likely to continue strengthening, with commodity prices supportive. Business inventories and Michigan sentiment are also due.

Fed Chair Yellen will speak at a town hall with educators. Harker speaks again, on economic mobility."