The Week Ahead
The week’s big economic release is the July jobs report, with consensus forecasts for nonfarm payrolls to increase by 2 million and the unemployment rate to decrease to 10.5%
- Other key U.S. economic reports this week will cover light vehicle sales, construction spending, manufacturing and non-manufacturing PMI, the trade balance, and initial unemployment claims.
- On the economic policy front, the Congressional debate of new fiscal stimulus returns this week. The Financial Times reports “In the US, Congress continues to seek common ground on approving further stimulus for the ailing US economy and reviving the unemployment payments that came to an end last week. Economists fear the withdrawal or reduction of stimulus risks a self-inflicted wound for the US, depressing consumption and potentially creating a housing crisis. The deadline to extend jobless benefits also coincided with the end of a federal moratorium on evictions, leaving families at the whim of a patchwork of state and local laws and courts to protect them from being forced out of their homes.”
- Overseas, investors will be paying close attention to manufacturing PMI numbers from the world’s major economies, industrial production in Europe, and Chinese trade flows.
- Be safe and have a great week!