The U.S. economy will be front and center over the next five days, as government economists unveil a deluge of high-profile data. Reports on consumer inflation, retail sales and industrial production will offer a glimpse into the world’s largest economy in the third quarter.
Domestic growth this year has largely disappointed investors. It has also been the subject of recent warnings by banking giants HSBC, Citigroup and Morgan Stanley, which say we are approaching a downtrend in the business cycle. Against this backdrop, investors are looking for clues about whether the labor market recovery is fueling growth, consumption and inflation.
Gross domestic product (GDP) expanded at an annualized 3% in the second quarter, revised estimates showed last month. That was the fastest expansion in over two years. The preliminary estimate had showed year-over-year growth of 2.6%.
Economic data and monetary policy headlined post–Labor Day action in the financial markets. To compare this week’s outlook with the previous edition, check here.