EMU Economic Indicators Preview (Week of 1 to 7 February 2010)

• German retail sales (December): up
• German industrial new orders (December): weak
• Output in the German producing sector (December): weak

Germany: Output in the producing sector usually follows industrial new orders
After having soared in November, German industrial new orders and output in the German producing sector are expected to have suffered a setback in December. However, they are unlikely to have decreased, as most of the correlated indicators improved.

In December, German retail sales are likely to have recovered from their drop the previous month. However, German consumer confidence and retailers' business assessment deteriorated.
The Purchasing Managers' Indices for the German and EMU manufacturing sector in January are unlikely to be revised significantly.

The ECB Council will meet again on Thursday. After the last meeting, ECB president Jean-Claude Trichet had already announced that the important decisions on further exit steps would probably be taken in March. We are therefore not expecting the forthcoming meeting to provide much impetus

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