US data last week remained generally favourable. In the labour market, the unemployment rate fell to nine per cent in January from 9.4% the previous month, which is the lowest level since April 2009.
Employment rose by 36,000 jobs, the smallest gain in four months, after rising by 121,000 in December. This was also much lower than the 146,000 increase expected.
The Institute for Supply Management (ISM) index for the manufacturing sector rose to 60.8 in January, from 58.5 in December. The highest reading for seven years, with the prices component also very strong.
New factory orders also rose 0.2% in December to a seasonally adjusted $426.8 billion. Meanwhile, the ISM index for the services sector for January grew at its fastest pace since August 2005, rising to 59.4 from 57.1 in December.
In the eurozone, the flash inflation estimate rose to a 27-month high of 2.4% in January from 2.2% during the last month of 2010. This increase was mainly driven by higher energy costs. Despite this figure, the European Central Bank (ECB) left interest rates on hold at 1%.
Meanwhile, the unemployment rate in December held steady near a 12-year high of 10% for the seventh month running. On a negative note, retail sales continued its downward trend of the previous month, falling unexpectedly by 0.6% in December.
In the UK, the manufacturing sector in January grew at its fastest pace since records began in 1992. The Purchasing Managers Index (PMI) for the manufacturing sector climbed to an higher-than-expected 62 in January from an upwardly revised 58.7 in December.
Meanwhile, the services industry rebounded from the coldest December in a century. The PMI index for this sector rose to 54.5 in January from 49.7 in December, the highest reading since May.
The PMI for the construction sector rose to 53.7, confirmed a resumption of expansion after shrinking in December for the first time in 10 months when it fell to 49.1.
In the housing sector, prices as measured by Nationwide fell by 0.1% in January from the previous month when they had increased 0.4%. Economists were expecting prices to fall by 0.4%.
Lastly, the headline rate of money supply in the UK fell1.3% in January to its lowest level on record. During December it also declined by 0.6%.
This article has been prepared by Bank of Valletta plc for general information purposes only.