Basis Points U.S. consumer confidence this month climbed to its highest level since December 2021, as inflation continues to trend downward, hopes of interest-rate cuts rise and recession fears abate. Private research group the Conference Board said Tuesday its confidence index climbed to 114.8 in January from a downwardly revised 108.0 in December. Economists expected the index to reach 115.0, according to a Wall Street Journal poll. (Dow Jones Newswires) Mexican economic growth slowed sharply in the fourth quarter as services increased modestly from the preceding three months and industrial output was unchanged. Gross domestic product expanded 0.1% from the previous quarter in seasonally adjusted terms, the National Statistics Institute said, compared with a 1.1% gain in the third quarter, and the smallest in nine consecutive quarters of economic growth. (DJN) The global economy is showing surprising strength in the face of political crises, the International Monetary Fund said in an update to its World Economic Outlook, noting that with inflation coming down and growth steady, "the likelihood of a hard landing has receded." Under its baseline forecast, the IMF expects the global economy will grow at a 3.1% pace this year , the same rate as last year. Growth will pick up to a 3.2% rate in 2025, the IMF added. (MarketWatch) Inflation pressures across the Australian economy dissipated quickly through the final three months of 2023, giving the Reserve Bank of Australia a strong case to keep interest rates on hold at its first policy meeting for 2024 on Tuesday. Consumer prices rose 0.6% in the fourth quarter from the third quarter and by 4.1% from the same time a year earlier, well down from the peak seen in late 2022 of a 7.8% jump from the prior year, the Australian Bureau of Statistics said Wednesday. (DJN) Chinese factory activity remained in contraction for a fourth straight month, the latest sign that the country's economy is struggling to regain momentum, adding to pressure on policymakers to boost demand. The muted activity in China's manufacturing sector suggests a soft start to the year, and highlights the limits of Chinese leaders' attempt to double down on manufacturing to drive the economy as other traditional growth engines, particularly real estate, remain in the doldrums. 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

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