Rothschild Asset Management: Monthly Letter – January 2018
Marc-Antoine Collard, Chief Economist, Head Economic Research, Rothschild Asset Management
On the economic front, 2017 ended on a positive note, with GDP continuing to accelerate across much of the world as a result of the broadest cyclical upswing since the start of the decade. However, despite the undeniable improvement in the labor market that accompanied the enhanced economic situation, wage growth remained surprisingly soft in the vast majority of developed countries, which is partly explained by high levels of involuntary part-time unemployment and slow growth in productivity.
For now, the Markit index of business confidence continues to denote expansion of the global economy, and forward-looking indicators, such as new orders and backlogs of work, also point to the current upturn extending into the start of 2018. In fact, global confidence reached its highest level since March 2015, driven by the manufacturing sector, which has not been as upbeat in almost seven years.
Read the full analysis in the Monthly Letter (PDF 158 KB)-