Basis Points Pending home sales in the U.S. ended their six-month streak of declines in December with the National Association of Realtors' seasonally-adjusted index tracking sales, a measure of contract signings, gaining 2.5% from the month prior. (Barron's) U.S. consumer sentiment edged up in January for a second consecutive month, reaching its highest level since April, with the University of Michigan's sentiment index rising from 59.7 in December to 64.9. Economists polled by The Wall Street Journal expected the index to be unchanged from a preliminary 64.6 reading. (Dow Jones Newswires) Growth in services activity in the central U.S. fell in January and expectations for future activity moved into negative territory, according to a monthly survey by the Federal Reserve Bank of Kansas City. Its Tenth District Services Survey's composite index came in at minus 11 in January, down from readings of zero in December and 12 in November. Readings above zero indicate expansion, while those below zero indicate contraction. (DJN) Mexico registered a $984 million trade surplus in December, with modest increases from the year-earlier month in both exports and imports, the National Statistics Institute said Friday. (DJN) Economic sentiment in the eurozone improved more than expected in January and reached the highest level since June. The eurozone's economic sentiment indicator rose to 99.9 from an upwardly revised 97.1 in December, data from the European Commission showed. Economists polled by the WSJ had expected a reading of 96.8. (DJN) The German economy contracted 0.2% over the previous quarter in the final quarter of 2022, according to preliminary data from the country's statistics office Destatis, defying expectations of a deep recession only a few month ago, as mild winter weather and government stimulus cushioned the hit from a surge in energy prices. The economy expanded an upwardly revised 0.5% in the third quarter. (DJN) The Belgian economy grew 0.1% in the fourth quarter of last year after expanding 0.2% in the third quarter, data from the National Bank of Belgium showed. Economists polled by FactSet had expected a 0.1% contraction. For 2022 as a whole, the economy grew 3.1%. (DJN) The Swedish economy contracted by 0.6% on the quarter and also 0.6% on the year in the final quarter of 2022, according to a flash estimate released by Statistics Sweden, the national statistics office. Riksbank had forecast that the economy would shrink by 0.8% on the quarter but expand 0.6% on the year in the fourth quarter. (DJN) Spain's inflation unexpectedly edged up in January, breaking a string of five consecutive months of falls, due to higher gasoline prices as government fuel subsidies were scaled back. Consumer prices rose 5.8% in January on year by EU-harmonized standards, compared with 5.5% in December, preliminary data from the Spanish statistics office INE showed. Economists polled by the WSJ had a forecast of 4.9%. (DJN) China's official manufacturing PMI likely rebounded to 50.4 in January, up sharply from December's 47.0, according to a poll of economists by the WSJ. (DJN) South Korea's exports are tipped to shrink for a fourth consecutive month in January. Overseas shipments are forecast to fall 13.0% on year, following a revised 9.6% decline in December, according to the median forecast of nine economists polled by WSJ. (DJN) Feedback Loop

This newsletter is compiled by James Christie in San Francisco.

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This article is a text version of a Wall Street Journal newsletter published earlier today.


(END) Dow Jones Newswires

01-30-23 0716ET