This week, investors will focus on the Federal Reserve’s economic policy meeting on Wednesday. The central bank’s Board of Governors is widely expected to refrain from lifting its key policy rates this time, taking another “hawkish pause” – a term used when central banks keep rates steady despite signals that might warrant an increase. However, the economic reports published so far haven’t convincingly shown that policymakers have successfully brought down inflation. If new data suggest continued inflationary pressures, the Fed might resume its monetary tightening at its next meeting scheduled for October 31st. This is why investors are advised to monitor the data released in the weeks leading up to the next meeting, as it can provide insights into the central bank’s potential actions.
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Here are three economic events that could affect your portfolio this week. For a full listing of all upcoming economic events, check out the TipRanks Economic Calendar.
» August’s Building Permits and Housing Starts – Tuesday, 9/19 – These reports provide valuable insights into the health of the housing market, as well as the economy overall, since the housing demand correlates with economic growth and consumer sentiment. Both reports are leading indicators, used by economists and analysts, among other data, to measure current demand and to estimate near-term trends in real estate, as well as in the connected industries.
» September’s Philadelphia Fed Manufacturing Survey – Thursday, 9/21 – This report, based on the survey performed by the Federal Reserve Bank of Philadelphia, measures the manufacturing conditions in the survey area (Philadelphia, New Jersey, and Delaware); it is considered to be an accurate leading indicator of the two nationwide reports, Manufacturing PMI and ISM Manufacturing indexes.
» September’s S&P Global Manufacturing PMI and Services PMI (preliminary) – Friday, 9/22 – These reports measure business conditions in the manufacturing and services sectors, two main sectors of the U.S. economy, which directly affect economic growth. PMI indices are leading economic indicators used by economists and analysts to gain timely insights into changing economic conditions since the direction and rate of change in the PMIs usually precede changes in the overall economy.
