Ifo economists said that a silver lining has been observed and that the likelihood of a recession has decreased. EU politicians are still trying to agree on a proper level for a gas price cap. Three European Central Bank policymakers spoke about the high likelihood of another 50-bps rate hike in February and the potential for more hikes after that. Bank of France expects the French economy to grow 0.3% in 2023.
Eurozone’s Q3 wages 2.1% yr/yr (last 3.2%), Q3 Labor Cost Index 2.9% yr/yr (last 3.8%), and October Construction Output 1.27% m/m (last 0.45%)
Germany’s December ifo Business Climate Index 88.6 (expected 87.4; last 86.4). December Current Assessment 94.4 (expected 93.5; last 93.2) and Business Expectations 83.2 (expected 82.0; last 80.2)
U.K.’s December CBI Industrial Trends Orders -6 (expected -9; last -5)