US Composite Output Index, a survey-based GDP proxy, posted slower growth in January, S&P Global reports. Business activity expansion downshifted from December’s 32-month high to a softer pace. “Although output growth slowed slightly in January, sustained confidence suggests that this slowdown might be short-lived,” says Chris Williamson, chief business cconomist at S&P Global Market Intelligence. “Especially encouraging is the upturn in hiring that has been fueled by the improved business outlook, with jobs being created at a rate not seen for two-and-a-half years.”

US consumer sentiment eased in January, according to survey data from the Univerity of Michigan. The final January report for the Michigan Consumer Sentiment Index shows the benchmark decline for the first time in six months.

Economists expect the government’s initial estimate of fourth quarter gross domestic product to post an annualized 2.7% increase in Thursday’s report, according to a Bloomberg survey. If correct, output will slow modestly after Q3’s 3.1% rise.

China’s economic activity unexpectedly stumbled in January, based on PMI survey data. Factory activity contracted this month after rising for three months. The non-manufacturing index for construction and services fell to a level that indicates a slight expansion.

US Dollar Index falls for second week as President Trump hints at softening plans to impose tariffs on China. “The main driver of the reversal of US dollar strength this week has been the scaling-back of investor fears over disruption to global trade from Trump’s tariff plans,” says Lee Hardman, senior currency strategist at MUFG.