Investors’ attention this week will be focused on several very important economic reports, which will be published this week. These and other reports, coming out in the weeks ahead, will help shape the Federal Reserve’s monetary decision at its next policy rate meeting in September.
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As the Fed reiterated numerous times, its rate decisions are data-dependent. Therefore, it is most worthwhile for the investors to keep an eye on these reports, as they can help shed some light on the central bank’s further moves and their implications for the stock markets.
Here are four 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 Consumer Confidence Index – Tuesday, 8/29 – this report, released by the Conference Board, conveys the level of confidence that consumers have in economic activity. The level of confidence affects consumer spending, which contributes about 70% of the U.S. GDP, therefore this Index is one of the most important leading indicators.
» Q2 2023 GDP Growth Annualized (second estimate) – Wednesday, 8/30 – The advance estimate, published end-July, surprised on the upside, showing a 2.4% rate of growth in the economy versus forecasts of 1.8%. Since the advance estimate’s release, the data used to compile the report has been updated, so that the second estimate may again produce a surprise, which can affect the market sentiment.
» July’s Core Personal Consumption Expenditures – Thursday, 8/31 – The report, released by the Bureau of Economic Analysis, reflects the amount of money spent by the consumers during the period. Core PCE index is the Federal Reserve’s primary inflation measurement tool, used as the benchmark in its inflation targeting actions. Thus, this is one of the most important reports directly affecting the Fed’s decisions.
» August’s Non-Farm Payrolls and Unemployment Rate – Friday, 9/01 – The Nonfarm Payrolls report reflects the number of jobs created during the month in all sectors of the economy apart from the agricultural sector. The unemployment rate report presents the number of jobless people as a percentage of the labor force. These reports are of utmost importance for policymakers, since employment, along with the price stability, is one of the Federal Reserve’s mandates. Therefore, the Fed takes these reports into the account when making decisions on its monetary policy.
