This Week 29 August – 2 September 2022
Next week in the US, speeches by a number of Fed officials, the US employment report, and the ISM manufacturing PMI are expected to take center stage. Inflation figures for many European nations, including Germany, France, and Spain, as well as Q2 GDP data for India, South Korea, Italy, Canada, Brazil, and Turkey will also be discussed. The manufacturing PMIs for China, India, Spain, Italy, and Switzerland will lastly be made public.
After Fed Chair Powell observed on Friday that inflation is still too high and that the Fed’s tightening cycle is far from over, sparking a severe market sell-off, speeches from other Fed officials the following week will remain in the spotlight. A number of economic reports will also be highlighted, with the US non-farm payrolls report taking center stage. The economy is predicted to create 285k jobs in August, while the unemployment rate will remain at 3.5%. The ADP Employment Change, JOLTs Job Openings, and the ISM manufacturing PMI will also be highlighted. Brazil will provide a measurement of its Q2 GDP along with data on unemployment and industrial production elsewhere in America. The July job report and business confidence for Mexico will be released.
With significant updates on inflation, unemployment figures, Q2 GDP growth, and S&P Manufacturing PMIs, it will be a busy week in Europe. The annual inflation rate is predicted to have increased to a new record high of 9% in August from 8.9% in July, according to the flash CPI print for the Euro Area, as energy prices reached previously unheard-of levels. While prices in France are anticipated to remain constant from the previous month’s 37-year high, those in Germany and Italy should increase more quickly. In contrast, the region’s unemployment rate likely reached a record low of 6.6% in July, while in Germany, it is expected to increase even more to a 12-month high. Final Q2 GDP data will be released by France, Italy, and Poland, while Turkey will present preliminary estimates. The Euro Area Business Survey and Producer Prices, Germany’s Balance of Trade, Import Prices and Retail Sales, Switzerland’s KOF Leading Indicators, Retail Sales and Inflation, and Turkey’s Foreign Trade are some of the other data that will be released. The primary releases in the UK include the final S&P Manufacturing PMI, Nationwide home prices, and the Bank of England’s economic indicators.
After last month’s indicators suggested a slower growth in factory activity, investors in Australia will look to the manufacturing PMIs for August. All attention will be on business confidence for August in neighboring New Zealand.
As a result of the nation’s energy crisis, which forced local governments to ration energy for manufacturers across all industries, the highly anticipated Chinese manufacturing PMIs for August indicate either a contraction or a broad pause in the economy. Consumer confidence, unemployment, housing starts, industrial production, and retail sales are among the numerous statistics that will be released in Japan this week. In India, Q2 GDP data is expected to show robust annual growth, and investors are also awaiting August’s preliminary trade balance and manufacturing PMI data. In South Korea, Q2 GDP and the August PMI will provide additional economic information as August inflation is predicted to decline for the first time since January.