As September approaches, the financial markets brace for a series of significant economic reports that are anticipated to influence monetary policy and market dynamics. During the first full week, keep your eyes peeled for important data releases. These are the Q2 Current Account results, several indexes from the Ai Group and S&P Global, and critical employment and inflation figures. These reports, beginning on September 1, aim to provide insights into the economic landscape in both the United States and the Eurozone.
Then on September 1, our Nationwide Housing Prices report will give you a complete picture of how the housing market is performing. This information is extremely important because it shows us indications of decreasing home values and can help affect change in consumer confidence. Soaring or tanking property values can be harbingers of overall economic well-being, impacting consumer spending and investment decisions in ripple effects.
After this, on September 2, three key reports will be released. The ISM Manufacturing Index will provide insights into the manufacturing sector’s performance, while the final S&P Global Manufacturing PMI will confirm earlier estimates of manufacturing activity. These indexes are among the most closely watched by economists, as they provide insight into the level of production and conditions in the manufacturing sector.
Besides this national factory data, the monthly Construction Spending report will be published that day. This report measures total spending on construction projects, including residential and non-residential sectors, and serves as a key indicator of economic growth. Released will be the RCM/TIPP Economic Optimism Index, a sign of consumer optimism about the direction the economy is headed.
Of particular interest too, the flash Inflation Rate for the Eurozone will be released on Sept 2. This report is significant for market participants as inflation data in Europe can impact global economic trends and monetary policy decisions by central banks worldwide.
As September 3 nears, a torrent of economic indicators will be anxious to report. Each one contains critical information about the health and direction of our economy. The MBA Mortgage Applications report will shed light on mortgage demand and interest rates, while JOLTs Job Openings data will provide a snapshot of employment opportunities in the U.S., indicating labor market strength.
And the final S&P Global Services PMI will show us exactly how robust or sluggish the service sector currently is. This data is important to understanding the economy’s overall health as services account for nearly three-quarters of GDP. As always on this day, we’ll be introducing the new Q2 GDP Growth Rate. It will indicate if the economy expanded or shrank over the three-month period.
Factory Orders data are set to be released on September 3, providing insights into future manufacturing activity based on new orders received by factories. This metric is critical for sense checking potential production upside and general economic peppiness.
Coincidently, the Fed Beige Book is due for release on that same day. This document outlines anecdotal information on economic conditions across various districts in the U.S., serving as an essential tool for Federal Reserve policymakers in understanding local economies.
Lastly, the American Petroleum Institute (API) will release its weekly report on U.S. crude oil inventories on September 3. This information is key to understanding how much supply there is available in the global oil market and can greatly impact global oil prices.
As these reports are released, market watchers will be watching closely for what they mean for monetary policy and overall economic outlooks. The Fed’s next move could depend on these indicators, especially as they relate to preventing inflation while maintaining job growth.