Don't forget the importance of economic data

ECONOMICS

Amid the maelstrom that is the European debt crisis, one can be forgiven for wondering whether anyone is still paying attention to economic data.

Generally speaking, the numbers have been softer, although there are some signs of a nascent recovery in the US.  UK GDP estimates for the three months to the end of October came in at 0.5%; US mortgage applications are on the rise, and there has been an improvement in US retail sales.  It has all been about Italy, and now attentions are rapidly switching to Spain. However, I am certainly keeping an eye on lead indicators, especially UK inflation – this remains a worry. At the time of writing, UK inflation data is in-line with expectations. Just to recap, headline CPI inflation fel...