The Commerce Department’s monthly report on U.S. consumer spending highlights this week’s economic data.
New orders for durable goods in the United States are expected to increase in August, with business investment and consumer spending remaining positive. While demand for factory products has been strong during the pandemic recovery, manufacturers have been constrained by parts and labor shortages, transportation bottlenecks, and rising material costs. .
Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen appear before a Senate panel to discuss the US economic recovery. The hearing comes as growth shows signs of slowing, inflation is the highest in more than a decade, the Fed plans to cancel pandemic stimulus programs and government shutdown deadlines, and debt ceilings are looming.
China’s service sector unexpectedly suffered a severe blow in August as a wave of coronavirus infections led to further shutdowns across the country. Analysts and investors will closely monitor the country’s official purchasing manager indices for September to see if activity has picked up as Covid-19 restrictions have eased or even slowed in the face of crackdowns from the country. government against private companies and Beijing’s efforts to curb the real estate industry.
Unemployment claims in the United States are expected to decline during the week ended September 25 after increasing in the previous two weeks. Employers have been reluctant to resort to layoffs due to worker shortages, although a third consecutive increase in new claims for unemployment benefits may indicate that more friction is building in the labor market.
Inflation in the eurozone hit its highest level in nearly a decade in August. Economists are forecasting a further increase in consumer prices for September amid signs of rising costs across the global economy.
U.S. consumer spending is expected to rise in August as the economy has remained resilient despite the increase in Covid-19 cases caused by the Delta variant. In the same report, the Commerce Department will also release inflation measures. A key measure, the price index for personal consumption expenditure excluding food and energy, is expected to remain close to its highest level since the early 1990s.
The Institute for Supply Management survey of purchasing managers in US factories is expected to show that manufacturing activity grew at a sustained pace in September, but perhaps not as quickly as at the start of the recovery due to severe supply chain disruptions and some moderation in demand.
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