A look at some of the key business events and economic indicators upcoming this week:
EYE ON INFLATION
The Labor Department serves up its August reading of inflation at the consumer level Tuesday.
Americans continue to face higher costs, reflected in sharp annual increases in the consumer price index going back to April. The July reading matched the year-over-year inflation rate of 5.4% in June, the largest annual jump since 2008. Economists predict the consumer price index’s annual increase was slightly lower last month at 5.3%.
Consumer price index, annual percent change, not seasonally adjusted:
March 2.6
April 4.2
May 5.0
June 5.4
July 5.4
Aug. (est.) 5.3
Source: FactSet
MANUFACTURING BELLWETHER
The Federal Reserve issues its monthly tally of U.S. industrial production Wednesday.
Overall industrial production, which includes manufacturing, utilities and mining, posted a 0.9% increase in July, the biggest gain since March. On an annual basis, industrial production last month was 6.6% above its July 2020 level, but note quite back to its February 2020 pre-pandemic peak.
Industrial production, monthly percent change, seasonally adjusted:
March 2.8
April 0.0
May 0.8
June 0.2
July 0.9
Aug. (est.) 0.4
Source: FactSet
SIZING UP RETAIL SALES
Economists predict American shoppers cut back their spending again last month.
The Commerce Department is expected to report Thursday that U.S. retail sales fell 1% in August. That would follow a 1.1% drop in July, when spending fell at stores that sell clothing, furniture and sporting goods. The summer pullback in retail sales coincides with a surge in cases of COVID-19 cases as the virus’ delta variant spread.
Retail sales, monthly percent change, seasonally adjusted:
March 11.3
April 0.9
May -1.4
June 0.7
July -1.1
Aug. (est.) -1.0
Source: FactSet