5 Developments to Watch Next Week - US Data
The U.S. economic calendar is mild for a week in which the holiday will be shortened as unemployment claims numbers may receive more attention than usual after the big loss in Friday's jobs report, while producer price inflation figures take the top bill. Here's what you need to know about US data to start the week, in our series of 5 developments to watch for next week.
1. US Data
Friday's August producer price data will show how inflation pressures are shaping up after July data showed the biggest annual increase in more than a decade as the rapid economic recovery caused a mismatch between supply and demand.
While the
Fed notes that higher prices will likely be temporary, there are some concerns that persistent price pressures could cause the
Fed to withdraw easy money faster than expected.
Weekly unemployment benefits application data will be watched closely on Thursday next week. The U.S. Department of Labor added 235,000 jobs to the economy during August, well below the 750,000 economists estimated.
Hiring in the service and hospitality industry has stalled due to the new increase in coronavirus (Covid-19) cases. Also, the unemployment rate in the US fell from 5.4% to 5.2% in July, employment growth in July was revised sharply higher, revealing the underlying strength in the economy.