This week, the home front has a packed data schedule. A number of releases will provide an update on economic circumstances at the beginning of the third quarter. This will contain the announcement of the Exchequer Returns, unemployment rate, and July services PMI. Meanwhile, CPI inflation data for July is also due.
Additionally, the data calendar is extremely sparse. The Eurozone’s biggest feature will be retail sales in June. Sales are expected to increase by 0.1% this month, leaving them 0.2% higher year over year. Meanwhile, producer price inflation is expected to stay in negative territory, at -3.3% in June, up from -4.2 percent in May.
The German economy contracted again in the second quarter due to continued structural and cyclical pressures. Against this environment, industrial output has been declining over the last several years. Indeed, a slight 1% increase in output is projected for June, following a severe 2.5% drop in May.
In the United States, the only noteworthy release will be the non-manufacturing ISM for July. The index has fluctuated in and around the critical 50 threshold for some months, and this trend is likely to continue in July, with the ISM climbing to 51.0 from 48.0 in June. This week’s data calendar in the United Kingdom appears empty.
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