What to Expect This Week

This week, the United States Labor Department is likely to announce a 200 thousand drop in non-farm payrolls for August and a possible deterioration in unemployment rate to 9.5%.

In addition, it is expected that manufacturing Purchasing Managers Index (PMI) rose above 50 for the first time in August since the recession started. In the Euro Area, the key event is the ECB interest rate decision on Thursday but we don’t expect any changes in current monetary policy. Otherwise, Euro Area second quarter GDP may be confirmed at -4.7% annualized and inflation may go back to positive territory. In Japan, investors will be looking for the Lower House elections outcome, which may bring changes to the current fiscal policy. In the United Kingdom, we are looking for the uptrend in PMI surveys to continue. In Canada, unemployment rate is likely to have gone up in August. In Australia, Q2 GDP should stay in positive territory and the Reserve Bank of Australia will probably leave the benchmark interest rate on hold. Finally, in Switzerland, Q2 GDP is expected to contract for the third consecutive quarter and inflation to stay in a deflationary trend.

Anna Fedec, contact@tradingeconomics.com
8/31/2009 9:11:23 AM