MNI US Morning Briefing

     LONDON (MNI) - The US calendar kicks off at 0730ET, with the release of the

Challenger Monthly Layoff Intentions data.

     Around 0800ET, the January domestic vehicle sales data will be published.

     Domestic-made vehicle sales are expected to slow to a 13.2 million annual

rate in January after rising to a 13.6 million annual rate in December, with a

large snow storm trimming sales in the Northeast. Seasonal adjustment factors

will add sharply to unadjusted sales in January after subtracting modestly from

them in December.

     The latest US jobless claims release is expected at 0830ET, alongside the

latest preliminary Non-Farm Productivity numbers.

     The level of initial jobless claims is expected to rise by 5,000 to 238,000

in the January 27 week after a 17,000 rebound in the previous week. The usual

January noise in the data should start to dissipate soon. The four-week moving

average would fall by 3,000 in the coming week, as the 250,000 level in the

December 30 week drops out of the calculation, assuming the MNI forecast is

correct and there are no revisions.

     Nonfarm productivity is expected to rise only 0.7% in the fourth quarter

after a 3.0% gain in the previous quarter, as growth in the output component

slowed and hours worked growth accelerated. Unit labor costs are expected to

rise by 1.0% after a 0.2% decline in the third quarter.

     At 0945ET, the Markit US final January Manufacturing Index will be

released.

     The ISM Manufacturing Index will be published at 1000ET, along with the

December construction spending report.

     The ISM manufacturing index is expected to decline to a reading of 58.8 in

January after rising to 59.3 in December after annual revisions, but still

indicate strength. Regional conditions data have suggested a slowdown in growth,

but the flash Markit estimate ticked up slightly to 55.5 from 55.1 in the

previous month.

     Construction spending is expected to rise by 0.5% in December. Housing

starts fell sharply in the month, suggesting private residential building

slipped after a November gain.

     The US Natural Gas Stocks data for the current week will cross the wire at

1030ET.

     Late US data will see the Fed publish the latest Weekly M2 Money Supply

Data at 1630ET.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com