Looking at the week ahead, in Europe the focus will likely be on the flash August PMI readings. The readings for the Euro area, Germany and France are due on Thursday. Markets are expecting a modest 0.4pt decline for the Euro area composite PMI but we suspect plenty of focus will be on the flash manufacturing PMI reading for Germany given the softening data momentum over there. The other notable European releases this week also include the Euroarea trade balance today, UK inflation tomorrow, and German PPI on Wednesday.
OTTAWA — Canada’s labour market will emerge from the shadow of the United States next week, at least temporarily. But the outlook for job creation here will remain cloudy at best.
Most analysts are forecasting another month of moderate hiring in June, with anywhere between 22,000 and 30,000 positions being created. The latest employment tally from Statistics Canada, to be released Friday, will be one of two major data releases in the coming days.
WASHINGTON — U.S. private-sector employers stepped up hiring in December, suggesting some momentum in the economy as the year ended, even as a budget crisis loomed.
While other data on Thursday showed an increase in the number of Americans filing new claims for unemployment benefits, the trend remained consistent with steady job growth.
“The underlying economy has momentum, and the employment data confirms that. The hope and prayer of the market is that our political leaders don’t screw it up,” said John Brady, managing director at R.J. O’Brien & Associates in Chicago.
WASHINGTON — The number of Americans filing new claims for unemployment benefits fell last week, pointing to moderate job growth despite slowing economic activity.
Initial claims for state unemployment benefits declined 11,000 to a seasonally adjusted 346,000, the Labor Department said on Thursday. Claims for the prior week were revised to show 3,000 more applications received than previously reported.
Economists polled by Reuters had expected first-time applications to fall to 345,000 last week.
This week's main event will be the FOMC announcement on Wednesday at 2:00 pm and the subsequent press conference, the conclusion of the March 2-day Fed meeting, in which it is widely expected that Yellen will announce the end of the Fed's "Patience" with an economy in which resurgent waiters and bartenders continue to skew the job market even if it means consistently declining wages for 80% of the US labor force. Here is a summary of what else to expect this week from DB:
Bill Luby submits: Friday’s data dump of nonfarm payrolls, the ISM non-manufacturing survey and factory orders capped a big week for economic data and since there is an unusually long stretch until the next data points are released (Thursday’s jobless claims), this seems like a good time to update my ongoing chart of economic data relative to expectations.
WASHINGTON — The number of Americans filing new claims for unemployment benefits fell more than expected last week, which could ease fears of a marked deterioration in labour market conditions after a surprise stumble in job growth in March.