The Week Ahead
INSTALLMENT CREDIT Tuesday, July 8, 3 p.m.EDT -- Consumers probably added $5 billion more in new credit than they paid off in May, according to the median forecast of economists surveyed by MMS International, one of The McGraw-Hill Companies. The expected gain is lower than the $7.6 billion added in April and the $7 billion monthly rate averaged in the first quarter. The borrowing slowdown is suggested by weak retail buying in the second quarter, especially for cars. Big increases in debt in 1996 have led some economists to suggest that many households are tapped out and will hold off on borrowing more until their existing debts are paid down. However, steady job and income gains suggest that consumers will resume spending at a more robust pace in the second half of 1997. If so, installment credit may well pick up again. UNEMPLOYMENT CLAIMS Thursday, July 10, 8:30 a.m.EDT -- New claims for state unemployment benefits probably amounted to about 300,000 for the week ended July 5. That number is quite below the rate of about 340,000 averaged in the four weeks ended June 21. But state-office closings for observance of Independence Day mean that benefits-seekers had one less day to file claims in early July. In March, claims had fallen to one of the lowest levels in this expansion. But since then they have edged up, lifted by flooding in the Midwest and auto strikes. PRODUCER PRICE INDEX Friday, July 11, 8:30 a.m.EDT -- The MMS survey forecasts that producer prices of finished goods were unchanged in June, and that core prices, which exclude food and energy, rose just 0.1%. Continued declines in the wholesale cost of motor vehicles are expected to have offset price gains in other goods. In May, total producer prices and core prices each unexpectedly fell by 0.3%. This sign of a complete absence of inflationary pressures in the production process touched off big rallies in the financial markets.
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:
- Uber Paid Hackers to Delete Stolen Data on 57 Million People
- European Stocks Drift as Dollar Extends Decline: Markets Wrap
- Tesla’s Burning Through Nearly Half a Million Dollars Every Hour
- Two Biggest Risks Now Are China and Inflation, Market Veteran Says
- Jamie Dimon Says He'd Bet Donald Trump Doesn't Win Again in 2020