U.S. Economic News
January 18, 2019
U.S. Economic Indicators
The University of Michigan Consumer Sentiment Index slipped 7.6 points to 90.7 in the preliminary January reading, and is down 5.0 points on the year. The Index of Consumer Expectations declined 8.7 points to 78.3, while the Current Economic Conditions Index fell 6.1 points to 110.0. Report
Industrial production rose 0.3% in December (up 4.0% Y/Y), after increasing 0.4% (revised) in November. Capacity utilization edged up 0.1 point to 78.7 in November. Fed Report
U.S. News
The Wall Street Journal reports that U.S. officials are considering de-escalating tariffs on Chinese imports to calm markets and incentivize Beijing to make deeper concessions in the trade war. Treasury Secretary Steven Mnuchin reportedly proposed the idea to advance trade talks and win China’s support for longer-term reforms. WSJ
The Financial Times reports that the U.S. government shutdown is an emerging headwind to growth, according to New York Fed President John Williams. Williams also stated that the strong global growth, fiscal stimulus, and accommodative financial conditions that all contributed to the U.S. economy are diminishing. FT
According to the Financial Times, the E.U. is prepared to lower tariffs on imported U.S. cars as part of a trade deal, but is also warning that the bloc will retaliate if Washington levies punitive tariffs on Europe’s auto sector. Cecilia Malmstrom, the E.U.’s trade chief, said the willingness to engage on the issue would depend on what the U.S. puts on the table in negotiations. FT