Global Economy Week Ahead: Durable Goods, GDP, Consumer Sentiment
October 21 2018 - 3:29PM
Dow Jones News
By Sarah Chaney
In the week ahead, the U.S. will see data on durable-goods
orders, third-quarter gross domestic product and consumer
sentiment. Europe will receive data on manufacturing and
services.
WEDNESDAY
A survey of purchasing managers at businesses across the
eurozone is expected to record a further, slight slowdown in
activity in October. If the composite PMI suffers the expected
decline to 53.9 from 54.1, it will nevertheless indicate that the
economy has continued to grow at a pace roughly in line with the
European Central Bank's estimate of its speed limit, and is
therefore unlikely to persuade policy makers to rethink plans to
end their bond-buying program in December.
The Federal Reserve releases the beige book report, a roundup of
anecdotal information about regional economic conditions. In recent
beige book reports, companies have expressed concerns about
tariffs, with some saying they are holding back on investment plans
due to uncertainty.
THURSDAY
The Commerce Department releases September data on durable-goods
orders. In August, demand for long-lasting goods produced by U.S.
factories took off. But an underlying measure of business
investment, nondefense capital goods excluding aircraft, fell.
Economists will scour the report for evidence of whether the tax
overhaul is helping boost investment. Economists surveyed by The
Wall Street Journal forecast durable goods orders fell 1.9% in
September.
FRIDAY
The Commerce Department releases third-quarter gross domestic
product data. In the second quarter, GDP rose at a 4.2% seasonally
adjusted annual rate, powered by gains in consumer spending, net
exports and business investment. A widening trade gap could be a
drag on third-quarter GDP. Economists surveyed by The Wall Street
Journal forecast GDP growth of 3.4% in the preliminary reading.
The University of Michigan releases October consumer-sentiment
data. A measure of economic confidence among American households
edged down in early October but remained at a high level.
Economists surveyed by The Wall Street Journal expect the consumer
sentiment index clocked in at 98.5 in the final October
reading.
(END) Dow Jones Newswires
October 21, 2018 15:14 ET (19:14 GMT)
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