US: PCE and Capex orders - Danske Bank

According to analysts from Danske Bank, next week, the most important inflation measure in the US is likely to show slightly higher inflation.

Key Quotes: 

“In the US, the most import event next week will be the release of PCE figures for November on Friday. CPI numbers (usually a good predictor of PCE) for November were weaker than expected. Based on CPI, we estimate PCE core increased 0.1% m/m (1.5% y/y versus 1.4% in October although October was very close to 1.5% y/y) and PCE headline increased 0.3% m/m (1.8% y/y versus 1.6% y/y in October). The difference between the monthly increase in core and headline PCE is driven by increasing energy prices.”

“Friday also brings core capex orders for November. Capex orders have gained strong momentum during the fall and the regional capex plans suggest that this trend will continue. The average of the regional capex plans is at its highest level since February 2007, indicating continued tail winds for core capex orders in the coming months.”