What to Expect This Week?

This week, housing data for the United States is likely to show that new home sales declined in July, home prices felt further but existing home sales went slightly up...

Also, preliminary GDP may show that U.S. grew stronger than expected in the second quarter due to an increase in exports which have been boosted by a weak dollar. In addition, personal income probably fell in July reflecting the fiscal stimulus recently given by the Bush administration. In Canada, GDP growth should show some signs of weakening prompted by decline in exports, retail sales and housing starts. In the euro area, the most important event of the week will be the flash estimate of HICP inflation. We expect the inflation rate to have remained stable in August due to a significant decrease in energy prices.  In the United Kingdom, it is likely that house prices, mortgage approvals and consumer confidence declined further in July. In Japan, industrial production probably fell in July responding to slowing trend in exports.  Also, inflation might jump above the BOJ's comfort zone prompted by higher gasoline and food prices in July. Finally, New Zealand’s trade balance is likely to have improved in July for the second consecutive month due to a slowdown in import growth.

8/23/2008 10:25:42 AM