Eurozone economic data to show modest upturn in confidence

Eurozone economic figures due out in the coming week will show a modest upturn in both business and consumer confidence along with an easing of price pressures, economists said. In Britain, the coming week will likely reveal that there is life yet in the British economy, with several surveys showing encouraging gains.
The data-heavy week for the eurozone kicks off with the European Commission's confidence surveys on Monday, which are all forecast to post improvements on December data.
"The gains in the German IFO and Italian ISAE business confidence point to a small improvement in the overall business climate for the euro zone, although the small setback in the Belgian National Bank index suggests that the rise will be very modest," Bank of America economist Holger Schmiedung said.
"Confidence likely improved slightly as well," Schmiedung said.
Credit Suisse First Boston economists agreed that "a rise in industrial confidence seems likely in January" but cautioned that "a further improvement in consumer confidence may be some way off and probably remains dependent upon a fall in unemployment."
By contrast, HSBC economists predicted "a modest rise" in the commission's consumer confidence indicator.
On Tuesday, purchasing managers' index reports for manufacturing in the eurozone as a whole and member states are also likely to rise from December, albeit slightly.
HSBC economists were less upbeat, saying they "expect the PMI to fall back" despite signs of a recovery by longer-lead indicators.
Wednesday's eurozone and member state PMI reports for the services sector are also forecast to pick up.
On the inflation front, eurozone price pressures are forecast to have eased in January..
In recent weeks British economic numbers have gone both ways but one piece of recent data will continue to command attention - the slump in retail sales in December to near 25-year lows.
Against this backdrop any indicator that can shed more light on the outlook for consumer spending will be closely watched, including the GfK consumer confidence survey on Monday.