As the new week begins, investors and analysts prepare for another string of key economic releases. These reports will have an enormous impact on the direction of the market and in turn, policy makers. From August 4th – August 8th, the US and Japan will experience a number of important releases. Further, we should get key figures from Germany later this week.
The week will start off with the release of Factory Orders on August 4. This seminar will be particularly valuable given the current U.S. macroeconomic environment. That’s why this report is so important. It provides crucial information about the health of the nation’s manufacturing sector and acts as a bellwether of general economic activity. In order to prepare for this, starting on August 5, several pivotal reports will be released. The ISM Services PMI Note: the ISM Services PMI is perhaps the most widely watched indicator of services sector activity. It will publish alongside the final S&P Global Services PMI and the RCM/TIPP Economic Optimism Index. All three of these reports create a picture of the current consumer and business sentiment, always setting an optimistic expectation for robust growth in the coming quarters.
The American Petroleum Institute (API) is set to release its weekly report on U.S. crude oil inventories on August 5. This report is particularly important given the current energy supply environment. It illustrates how these dynamics collectively affect prices, particularly in a time when global markets are adjusting to new demand dynamics.
Starting August 6, we’ll be focusing on the MBA Mortgage Applications report. This report provides nationally representative data on mortgage loan application volumes, illuminating patterns in housing market activity. At the same time, Average Cash Earnings will come out, which will provide a window into wage growth and consumer purchasing power. Today, the EIA will publish its regular weekly report on U.S. crude oil inventories. This report will help explain the drivers of these recent swings in the oil market.
The week continues on with Initial Jobless Claims on August 7. During these uncertain economic times, this report has become an even more acute bellwether of broader labor market health. We expect this report to bring much-lauded attention to the growing unemployment trend and impact Federal Reserve discussion of policymaking. On this day, they’ll be releasing Wholesale Inventories and Consumer Inflation Expectations. This data will undoubtedly illuminate the ways inflation is negatively impacting our economy.
So let’s take a look at Germany. On August 7, we’ll be getting key economic data such as Balance of Trade results as well as July Industrial Production figures. These reports are invaluable for judging Germany’s outsize economic performance and what it means for the broader Eurozone.
August 8 th is shaping up to be another hectic day with a number of key releases from Japan. The Bank of Japan (BoJ) will release its Summary of Opinions, offering a glimpse into policymakers’ thinking. Besides that, Household Spending, Bank Lending, Current Account results and the Eco Watchers survey will get published. Taken together, these reports will provide a state-by-state snapshot of Japan’s domestic economic conditions.
It will be an extremely important week for investors and policy makers. They will be assessing current economic conditions in all of their major markets over their period of time. Analysts are counting on these reports to show a critical picture. Such observations might have huge corrective effects on the course of monetary policy in the U.S., Japan, and Germany.