The US Consumer Confidence Index showed an improvement in December, rising to 115.8 up from 111.9 in the previous month, according to data from the Conference Board.
Meanwhile, the Present Situation Index – which measures consumers’ assessment of current business and labor conditions – dropped slightly by 0.3 points to 144.1 in December.
“The Present Situation Index dipped slightly but remains very high, suggesting the economy has maintained its momentum in the final month of 2021,” Lynn Franco, senior director of economic indicators at the organization, said in a statement.
“Expectations about short-term growth prospects improved, setting the stage for continued growth in early 2022,” she added.
UK business growth sluggish
In the fourth quarter, businesses in the UK experienced their lowest growth since this year’s earlier lockdown, the Confederation of British Industry said.
The organization’s monthly growth indicator declined by 11 points to 21 points in the three-month period ending in December. The gauge is based on a compiled survey of retailers, manufacturers and other service companies, Reuters reported.
Labor and materials shortfalls, higher costs and new pandemic-related rules are some of the challenges that are facing businesses as they welcome Christmas.
Firms also anticipate another weak performance in early 2022 due to omicron worries.
Spain’s growth eases
Spanish GDP went up by an annual rate of 3.4 percent in the third quarter, noticeably dropping from the previous quarter’s 17.7 percent figure, official data showed.
Growth in household final consumption expenditure decelerated significantly to 2.7 percent versus a much higher 23.6 percent in the second quarter, the country’s National Statistics Institute said.
Moreover, gross fixed capital formation slipped by 0.6 percent following an 18.5 percent expansion in the previous quarter, data revealed.
Minimum corporate tax
The European Union presented its plans to implement the 15 percent minimum corporate tax rate – which is set to take place starting from 2023 – on Wednesday and believes that the US will follow suit despite some issues in Congress.
The plan was approved by 136 countries in October but is still needed to be approved by each individual country’s legislative arm, the Wall Street Journal reported.
The European Commission, the EU’s executive branch, said it will introduce a directive that will be agreed on by all 27 countries instead of separate laws for each country.
China’s growth forecast
An ease in Chinese economic policies is set to drive the country’s growth upwards in 2022, after some previously-adopted tight policies, Bloomberg reported, citing Morgan Stanley.
The private sector is set to receive a boost after the government acknowledged that growth is still needed in the country, despite its target of a more egalitarian society.
The firm expects the country to grow by 5.5 percent, higher than the market consensus of 5.2 percent, according to Bloomberg.
In other China-related news, the government decided to implement more policies that will aid exporters and importers due to uncertainties regarding foreign trade, Reuters reported, citing official Chinese news agency Xinhua.
These will include tax and fee reductions as well as accelerating export tax rebates.
Saudi economy to grow by 7.4% in 2022 to near $1tr, finance minister says