In follow up to the August acceleration in average
hourly earnings, inflation data roll out in force in the coming week.
Producer prices will be posted on Wednesday but are not expected to
show resumed pressure nor are import & export prices on Friday.
Some headline pressure for consumer prices, data out on Thursday, is
expected but not for the core. Also released in the week will be
September updates on inflation expectations, first on Wednesday with
business data from the Atlanta Fed and then Friday with consumer data
from the University of Michigan. JOLTS will be Tuesday's highlight and
will offer another look at the labor market, here from the perspective
of job openings. The Beige Book will be posted on Wednesday ahead of
the month-end FOMC and yet another subdued economic assessment from
this very subdued report can't be ruled out. Two major reports will end
the week on Friday: retail sales where another solid month is the call
and industrial production where only limited bounce-back strength is
expected. Unless the data prove surprising, it will be a week of
moderate-to-solid overall strength with, despite the August jump in
hourly earnings, only limited inflationary pressures.
Monday
Consumer Credit for July
Consensus Forecast: $14.0 billion
Consensus Range: $12.5 to $15.5 billion
Rising growth of $14.0 billion is expected for consumer credit
in July, after posting a moderate increase of $10.2 billion in a June
result that showed a slight decrease for revolving credit.
Tuesday
Small Business Optimism Index for August
Consensus Forecast: 108.2
Consensus Range: 103.5 to 108.5
The small business optimism index
is expected to firm to 108.2 in August vs July's 107.9 which was the
second highest reading in 45 years of data. Strength in July was
centered in job openings and the outlook for the economy.
JOLTS: Job Openings for July
Consensus Forecast: 6.665 million
Consensus Range: 6.600 to 6.900 million
Forecasters see job openings in July, at a consensus 6.665 million, holding steady near June's total of 6.662 million. This report has been signaling strong demand for labor.
Wednesday
PPI-FD for August
Consensus Forecast, Month-to-Month Change: 0.2%
Consensus Range: -0.1% to 0.3%
PPI-FD Less Food & Energy
Consensus Forecast, Month-to-Month Change: 0.2%
Consensus Range: 0.2% to 0.3%
PPI-FD Less Food, Energy, & Trade Services
Consensus Forecast, Month-to-Month Change: 0.2%
Consensus Range: 0.2% to 0.3%
An incremental 0.2 percent monthly increase is expected for the August producer price headline following a 0.3 percent increase in July. When excluding food and energy and also when excluding food, energy and trade services,
0.2 percent gains are also expected for both. Despite the low
consensus, trade services have been on the rise in this report
reflecting price pressures for wholesalers and retailers.
Beige Book
Prepared for the FOMC Meeting on September 25 & 26
The long refrain of "modest-to-moderate" economic
growth returned in July's Beige Book which cited wide concerns over cost
pressures and supply dislocations tied to tariffs. But this contrasted
sharply with the assessment of the FOMC statement that followed two
weeks later, which described both economic activity and household
spending as strong.
Thursday
Consumer Price Index for August
Consensus Forecast, Month-to-Month Change: 0.3%
Consensus Range: 0.0% to 0.4%
Consumer Price Index
Consensus Forecast, Year-on-Year Change: 2.8%
Consensus Range: 2.7% to 3.0%
CPI Core, Less Food & Energy
Consensus Forecast, Month-to-Month Change: 0.2%
Consensus Range: 0.2% to 0.3%
CPI Core, Less Food & Energy
Consensus Forecast, Year-on-Year Change: 2.3%
Consensus Range: 2.3% to 2.5%
Businesses may be complaining loudly about high
costs but prices at the consumer level have been very stable.
Forecasters see the consumer price index rising a moderate 0.3 percent in August following only a 0.1 percent increase in July. The consensus for the ex-food ex-energy core rate is only a 0.2 percent gain. Year-on-year rates
for August are seen at 2.8 percent overall, vs 2.9 percent in July,
and 2.3 percent for the core which would be unchanged from July.
Initial Jobless Claims for September 8 week
Consensus Forecast: 210,000
Consensus Range: 208,000 to 219,000
Initial claims are expected to
come in at 210,000 in the September 8 week vs 203,000 in the prior week
which along with the 4-week average at 209,500 hit 50-year lows. State
estimates were unusually heavy in the prior week which raise the risk
of significant revisions.
Treasury Budget for August
Consensus Forecast: -$166.5 billion
Consensus Range: -$183.0 billion to -$91.8 billion
Individual tax receipts are up, corporate tax
receipts are down and spending is on the rise. Nine months into the
government's fiscal year, the year-to-date deficit to July was 16
percent deeper than the prior year. Econoday's consensus for the August Treasury statement is a monthly deficit of $166.5 billion.
Friday
Retail Sales for August
Consensus Forecast: 0.4%
Consensus Range: 0.2% to 0.6%
Retail Sales Ex-Autos
Consensus Forecast: 0.5%
Consensus Range: 0.3% to 0.7%
Retail Sales Ex-Autos Ex-Gas
Consensus Forecast: 0.4%
Consensus Range: 0.3% to 0.5%
Retail Sales Control Group (Ex-Food Services, Ex-Autos, Ex-Gas, Ex-Building Materials)
Consensus Forecast: 0.4%
Consensus Range: 0.4% to 0.4%
Another solid month for retail sales is the
expectation for August where the consensus is calling for a 0.4 percent
gain vs 0.5 percent in July. Excluding autos, a gain of 0.5 percent is
the call with ex-auto ex-gas at a consensus 0.4 percent and control
group sales also at 0.4 percent.
Import Prices for August
Consensus Forecast, Month-to-Month Change: -0.1%
Consensus Range: -0.4% to 0.2%
Export Prices
Consensus Forecast, Month-to-Month Change: 0.2%
Consensus Range: -0.2% to 0.4%
Import price pressures were on a tariff-boosted
rise before easing back abruptly in both June and July. And with oil
soft, forecasters see August import prices slipping 0.1 percent after no change in July. Export prices for August are seen up 0.2 percent vs July's 0.5 percent decline.
Industrial Production for August
Consensus Forecast, Month-to-Month Change: 0.4%
Consensus Range: 0.1% to 0.6%
Manufacturing Production
Consensus Forecast, Month-to-Month Change: 0.2%
Consensus Range: 0.2% to 0.7%
Capacity Utilization Rate
Consensus Forecast: 78.3%
Consensus Range: 78.0% to 78.5%
A bounce back is expected for industrial production,
at a consensus increase of 0.4 percent in August vs July's very soft
0.1 percent gain that reflected a monthly downswing in mining, which
has otherwise been very strong, and a third month of weakness for
utilities. The manufacturing component is not expected to show much strength, at a consensus 0.2 percent rise vs a 0.3 percent gain in July. Pressures on capacity utilization are expected to tighten 2 tenths to 78.3 percent.
Business Inventories for July
Consensus Forecast, Month-to-Month Change: 0.5%
Consensus Range: 0.2% to 0.6%
A large 0.5 percent rise is the consensus for business inventories in July, a constructive build that would help narrow the gap with underlying sales which have been very strong.
Consumer Sentiment Index, Preliminary September
Consensus Forecast: 97.0
Consensus Range: 95.5 to 99.0
The consumer sentiment index is
expected to move higher in the preliminary reading for September, at a
consensus 97.0 vs 96.2 in an August report that showed easing strength
in the assessment of current conditions. The August report also showed
incremental pressures in inflation expectations tied to expectations for
robust economic growth.
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