What to Expect This Week?

This week will be very light in terms of economic releases. In the United States, despite the recent easing in energy and food prices producer price inflation is likely to grow further boosted by second round effects of high commodity prices.

In addition, the Philadelphia Fed’s Business Outlook Survey may show that business sentiment slipped slightly in August due to weakness in the Mid-Atlantic region’s manufacturing sector and poor retail sales, although exports may provide some offsetting boost. In Canada, we expect inflation to have accelerated during the month July. In the Euro Area, flash PMI’s are likely to show further deterioration in economic conditions. In the United Kingdom, focus should be on the revision of Q2 GDP data, which is expected to deteriorate from 0.2% to 0.1% due to weaker than expected industrial production. Also, retail sales probably fell in July as falling house prices and tighter credit conditions curbed consumer spending. Finally, in Japan, the BoJ is likely to keep rates on hold and trade surplus for the month of July is likely to have narrowed on slowing exports.

8/16/2008 1:49:14 PM