Key Macroeconomic Indicators for Base Metal Prices (2016-1-15)

SHANGHAI, Jan. 15 (SMM) – US December PPI, retail sales and industrial output and University of Michigan’s January CCI will be released today, with market optimism expected to prevail in the market. This should boost base metals.

US December non-farm employment beat market expectations, but growth in wages slowed. This, combined with sharp declines in US November wholesales, bode ill for December retail sales. The average hourly salaries in December fell for the first time since 2014. November wholesales dropped most significantly since January 2015.

US December PPI is expected to improve only limitedly. December import goods price index was slightly higher than market expectations and November’s, but US inflation rate remains low.

New York Fed’s manufacturing index in January should improve, despite the fact that ISM’s manufacturing PMI extended declines.