It looks like 2018 is off to a solid start in the Eurozone. After the strong industrial production print for December 2017, growing 5.2% year-on-year, PMI data this week continued to register high levels of growth in the manufacturing sector.
The UK economy continues to show something of a split personality. In manufacturing, conditions look robust, with output having grown by some 5.1% over the past six months in annualised terms.
The minutes from the Federal Reserve’s January meeting helped push the yield on the 10-year US Treasury to just shy of 3%.
Finally, some good news on UK productivity growth. An expansion of 0.8% in 2017 Q4, coming on the back of a 0.9% pick-up in the previous quarter, topped the strongest six-month growth period since before the Global Financial Crisis (GFC). It has been a long time coming. The UK has lagged its counterparts on productivity for decades, but has fallen further behind since the GFC. So is this a new dawn, or a false one? And why does it matter?
The developed Asian industrial cycle appears to have hit a soft patch, with activity moderating in the fourth quarter in key economies such as Korea, Taiwan and Singapore. An industrial wobble would be particularly untimely given expectations for a healthy developed market cycle lifting activity and driving investment across the region.
Investing in the right active strategy will be key as momentum for China’s V-shaped rebound moderates once the rest of the world recovers and Beijing normalises policy.
Flexibility, amenity, connectivity, technology and sustainability (FACTS) are key for future-fit offices. Read more about our views.
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