By WSJ Staff 

In the week ahead, the U.S. Commerce Department releases fresh figures on new-home sales, durable goods and household spending. The eurozone issues figures on activity at factories and service providers, and China releases data on industrial profits.

Monday: The eurozone publishes manufacturing and services survey data. The figures are expected to point to steady growth in activity during September, while indicating the services sector weakened even as the decline in manufacturing activity slowed. Economists expect the composite purchasing managers index -- which aggregates measures of activity for factories and service providers -- to rise to 52.0 from 51.9 in August, pointing to a continued expansion, albeit at a modest pace. However, they expect the services measure to fall to 53.3 from 53.5, while the manufacturing index is seen edging up to 47.2 from 47.0. A reading below 50.0 points to a decline in activity.

Wednesday: The Commerce Department releases figures on new-home sales for August. Americans bought fewer newly built homes in July than during the previous month, despite a decline in mortgage rates. Economists expect a 3.8% increase in this week's report, which will shed light on whether lower rates are enticing more buyers and how concerns over limited housing inventory are playing out in the market for new homes. The housing market overall has been showing modest signs of a pickup, after underperforming the broader economy for more than a year. U.S. housing starts and existing home sales saw strong gains in August.

Friday: The Commerce Department issues figures on August durable-goods orders and household spending. Economists expect orders for durable goods -- manufactured products intended to last at least three years -- decreased by 1.2% in August from a month earlier. In July, orders rose 2.0%. The latest durable-goods data come as other recent figures have indicated a global manufacturing slowdown. In August, a key measure of U.S. factory activity contracted for the first time in three years.

Economists estimate U.S. household spending increased 0.3% during August, which would represent continued strength in consumer activity, while other segments of the economy -- namely business investment and manufacturing -- have been slowing. In July, household spending rose by 0.6%.

China releases data on profits at large industrial firms. Economists expect industrial earnings growth to remain sluggish, a major policy concern. Upstream players are struggling with falling prices due to soft demand, although consumer-goods producers are benefiting from rising food prices. If companies aren't making money, they will not only cut down on investment and production, but they will probably also cut wages. That is something Beijing doesn't want to see.

(END) Dow Jones Newswires

September 22, 2019 16:11 ET (20:11 GMT)