What to Expect This Week

This week, in the United States, a survey on business sentiment among non-manufacturers is expected to print above recessionary levels. This is an exceptionally good leading indicator released monthly by the Institute for Supply Management.

Moreover, the US trade deficit is likely to shrink in August on lower imports. In addition, several Federal Reserve officials, including Chairman Ben Bernanke, are scheduled to speak about the economy. In Europe, the European Central Bank will hold its monthly meeting but we do not expect any changes on its monetary policy. In the United Kingdom, the Bank of England will probably keep both the interest rate and the asset purchase target unchanged. In Japan, machine orders are likely to have improved further in August.  In Canada, unemployment rate may increase to 8.9% and trade balance stay in negative territory. In Australia, despite an ongoing increase in unemployment, the Reserve Bank of Australia may hike its official interest rate to deal with expectations for higher inflation.

Anna Fedec, contact@tradingeconomics.com
10/3/2009 4:07:10 PM