The series of reports begins at 8:30 am ET Tuesday with the release of a report on personal income and outlays. Personal income is the total dollar value of income received from all sources by individuals. The data is another way to gauge the strength of the consumer sector in the economy, and estimate the future. Problems with lending and evidence that the subprime mortgage crisis is spreading to prime mortgages have left investors concerned about consumer spending. A report on consumer sentiment came in slightly below expectations, though it showed July as the strongest month since February.
Wednesday at 10:00 am ET is the scheduled time for the release of the ISM manufacturing survey. The survey is conducted by the Institute for Supply Management, and encompasses nearly 400 manufacturing firms on all aspects of employment, production, new orders, supplier deliveries, and inventories. The information gives investors a detailed look at the manufacturing sector, a major cog in the economy. Also seen in the report are sub-indexes which provide insight on the potential for developing inflation. Therefore, the Federal Reserve will also keep a close eye on the report, as inflation remains its chief concern.
Rounding out the big three for next week is the Employment Situation Report, scheduled for release Friday at 8:30 am ET. The employment situation report is very important as it contains a set of significant labor market indicators. These include unemployment, the average workweek, and the basic hourly rate. Investors can learn a lot from the report, especially with wage inflation. The Federal Reserve is always on the lookout for wage inflation, which can be a main cause of an interest rate hike.
Other reports coming out next week include consumer confidence on Tuesday, the 10-year note announcement and motor vehicle sales Wednesday, and the ISM non-manufacturing survey Friday.
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