Daily Economic Outlook/Jan 25, 2016

Business surveys from the UK, the US and Germany will be released today that will give indications related to sentiment at the beginning of 2016. Particularly, it will help measure the impact of a surge in financial market volatility. The recently released euro area flash PMI survey indicated a drop in the January manufacturing index, while the services index also declined. However, these declines were comparatively moderate and the survey indicates that the euro area grew between 0.3% and 0.4% quarterly.

Germany's IFO survey due to be released today is likely to show a marginal drop in the headline index to 108.5 in January from 108.7 in December. Domestic demand seems to be stronger, in spite of an increase in downside risks to global growth. The IFO expectation is expected to lead the headline index lower and have a slight decline from 104.7 to 104.3.

Meanwhile, the UK's CBI industrial trends survey is expected to decline to -10 in January from -7. The exports market is likely to remain a challenge for the manufacturing sector. The Dallas Fed manufacturing survey in the US is also due to be released today.