This was a relatively slow week for economic news, but the next week is shaping up to be a busy one. In preparation for what’s to come, let’s review the economic reports that are scheduled to be released over the next several trading days:
Tuesday: Retail Sales. Through this report, the Commerce Department announces total receipts of retail stores for the past month. Retail sales do not include spending on services, which makes up over half of total consumption. The report also covers retail sales ex-autos, removing the most volatile consumer purchases. The changes in retail sales are followed closely and are a good indicator of broad consumer spending patterns.
Tuesday: Business Inventories. The Commerce Department’s business inventories report includes sales and inventory statistics from all three stages of the manufacturing process (manufacturing, wholesale and retail). The retail inventory number is an important part of this report as it can move the market. The report also can affect the Gross Domestic Product outlook.
Wednesday: Producer Price Index (PPI). The Labor Department will release this monthly index that measures the price of goods at the wholesale level for May. There are three categories within the PPI: crude, intermediate and finished. The market tracks the finished goods index most closely, as it represents prices that are ready for sale to the end user.
Wednesday: Industrial Production. The Federal Reserve will release its monthly industrial production report for May that measures the physical output of the nation’s factories, mines and utilities. Manufacturing production, the largest component of the total, is derived from using the manufacturing hours worked from the employment report.
Thursday: Consumer Price Index (CPI). The Labor Department will release this important report for May. The CPI is a measure of the price level of a fixed market basket of goods and services purchased by consumers. CPI is the most widely cited inflation indicator, and it is used to calculate cost-of-living adjustments for government programs and is the basis of COLAs for many private labor agreements, as well. It is the benchmark inflation index and a very important report that can move the market.
Friday: Housing Starts and Building Permits. The Commerce Department will release this monthly report that measures the number of residential units on which construction began in May. Building permits are permits issued in order to begin excavation. An increase in housing starts and building permits usually occurs a few months after a reduction in mortgage rates. This report is broken down by region.
That’s all I have for you this week; I’ll be back online on Monday with your weekly ratings changes.
Have a great weekend,