News Item
December 16, 2019
U.S. business activity improved to a five-month high in December, a new survey showed Monday, and China’s industrial output and consumer spending accelerated in November. Meanwhile, new data from Europe showed it remained mired in low growth.
The economic measurements came as the U.S. reached a limited trade deal with China and put the finishing touches on a new trade pact with Mexico and Canada. Lawmakers in Washington also reached a deal to keep the government operating through September, avoiding a repeat of the government shutdown in early 2019. The result of the U.K.’s election also eased some uncertainty about how and when the country would leave the European Union. Meanwhile, the U.S. Federal Reserve said it would pause interest-rate cuts, suggesting the economy has found stability.
“We’re looking at moderate economic growth in 2020,” said Scott Brown, chief economist at investment firm Raymond James. “The downside risks look much less severe than they did back in August.”
Global stocks have risen on the developments, with markets heading higher on data signaling improvement in the Chinese economy.