The Week Ahead
LEADING INDICATORS Tuesday, Sept. 3, 8:30 a.m.EDT -- The Conference Board's index of leading indicators probably rose a slight 0.1% in July, says the median forecast of economists surveyed by MMS International, one of The McGraw-Hill Companies. If so, that would be the sixth consecutive increase, foreshadowing continued economic growth into 1997. In June, the index rose 0.5%. NAPM SURVEY Tuesday, Sept. 3, 10 a.m.EDT -- The National Association of Purchasing Management's business index likely rose to 51.5% in August from 50.2% in July. The increase would confirm that the industrial sector is recovering after a slump earlier in the year. Economists also will want to see whether the purchasing managers' index of vendor deliveries rose above its July reading of 50.9%. A big gain would indicate that producers are taking longer to deliver goods. Such capacity constraints could lead to future price increases. CONSTRUCTION SPENDING Wednesday, Sept. 4, 10 a.m.EDT -- The MMS survey projects that construction outlays rose 0.2% in July, after jumping 1.2% in June. Increases in nonresidential spending and government works likely offset a drop in homebuilding, as suggested by a 1.3% fall in housing starts in July. EMPLOYMENT Friday, Sept. 6, 8:30 a.m.EDT -- The MMS median forecast predicts that 225,000 nonfarm jobs were created in August. Combined with July's 193,000 new jobs, payrolls would be rising at a 209,000 monthly rate so far in the third quarter. That's below the 273,000 average of the second, but the pace is probably too fast for the Federal Reserve, especially because the jobless rate likely dipped to 5.3% from July's 5.4%. The MMS survey also projects that hourly pay rose 0.3%, pushing annual wage growth back up to 3.3%. Even stronger wage gains might persuade the Fed to tighten monetary policy--perhaps soon after the release of the job report.
To continue reading this article you must be a Bloomberg Professional Service Subscriber.
If you believe that you may have received this message in error please let us know.
You might like:
- Smartphones Are Killing Americans, But Nobody’s Counting
- Why a Pub in the Middle of Nowhere Was Named the World’s Best Restaurant
- Gulf Coast Oil Spill May Be Largest Since 2010 BP Disaster
- Ford to Take $267 Million Hit From Recall of F-Series Trucks
- Racist Outburst Prompts Faber’s Exit From Three Company Boards