What to Expect This Week

This week is packed with employment indicators and it will be interesting to see if money spend by the government but paid by tax-payers will at last start stimulating the job market.

In the United States, non-farm payrolls will be the most important economic release. Although it is expected that the labor market improved in July, we are still looking for job losses and a rise in unemployment rate. Also, both manufacturing and non-manufacturing ISM, a business sentiment survey, may advance slightly. In the Euro Area, the European Central Bank is likely to leave interest rates and non-standard policy tools unchanged. However, we are looking for a downward correction of flash estimate for services and manufacturing PMI’s. In the United Kingdom, the key event is the Bank of England meeting but we don’t expect any changes to the current monetary policy. Still in the UK, industrial production will probably show some signs of expansion after last month's decline. Yet, service PMI is expected to slow further. In Switzerland, headline inflation is likely to fall in July for a fifth consecutive month and the number of registered unemployed rise further. In Canada, unemployment rate is expected to rise to 8.8%. In Australia, we don’t expect any changes to the official interest rate set by the Reserve Bank of Australia. Unemployment may rise slightly and trade balance stay in the negative territory. The jobless rate should also spike higher in New Zealand.

Anna Fedec, contact@tradingeconomics.com
8/2/2009 12:04:18 PM