Economic Events and Analysis
Week of October 5 - 9
US Calendar: Strength in the service sector is central right now for the economy given export weakness in the factory sector. Both the services PMI and the ISM non-manufacturing reports will offer updates on Monday while the labor market conditions index could refocus attention on the prior week's employment report. Weakness in exports, based on advance data, is certain for Tuesday's trade report where imports, in contrast, will show a sharp rise that points to the strength of domestic demand. And recent gains for the revolving credit component of the consumer credit report, to be released Wednesday, have been offering new evidence of domestic demand. Another jobless claims report, where readings have been very low, will be posted on Thursday while import & export prices, which have been in long contraction, will be posted Friday.
Global Calendar: Central banks are front and center next week. No policy changes are expected from the Reserve Bank of Australia, Bank of England or from the Bank of Japan this week, although analysts expect the BoJ to take action at its meeting at the end of the month. Analysts will monitor Germany's manufacturing orders and industrial production data for signs of continued growth. The UK also posts industrial output data along with its merchandise trade deficit.