EU Manufacturing
The EA Markit Manufacturing PMI Flash report for August will be released on Monday, which should provide an indication on whether manufacturing in the eurozone has slowed in the past few weeks amid rising COVID-19 cases and supply chain disruptions.
U.S. Housing Watch
The U.S. housing market will be back in focus with a report on existing home sales for July on Monday, and new home sales numbers released on Tuesday. We know the red-hot housing market is cooling, and should continue to do so as we head into the fall. Housing stocks like Toll Brothers (TOL) and KB Home (KBH), are also feeling the chill as investors anticipate slower growth ahead.
Jobs Watch
Thursday's report on initial weekly unemployment claims and continuing claims will also reflect the sensitivity of the U.S. labor market. Weekly claims fell to 348,000 last week, and continuing claims fell to 2.8 million, both pandemic-era lows. Will those declines continue given the rise in COVID-19 cases?
Spending Slowdown
On Friday, U.S. personal spending and inflation expectations figures will be released for July, and we know that spending slowed dramatically last month, especially for automobiles and discretionary items. Friday's report will provide more detail on where the spending slowed the most, and how big a factor inflation played in the slowdown.
The Fed Heads for the Mountains
All of these economic data points will be discussed by central bankers and economists next weekend as the Federal Reserve hosts its annual Jackson Hole Economic Symposium in Wyoming. Between fly fishing, mountain biking and grilled Bison by the fire, Fed Chair Jay Powell and other officials will discuss the path forward for monetary policy and the obstacles in the way of the recovery. Don't expect any policy decisions to come down from the mountain, but there should be some fun pictures.
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