Economy Week Ahead: Factories, Trade and Jobs
By WSJ staff
The U.S. jobs report for July caps a full week of data that
should shed light on the global pace of recovery from a sharp,
severe recession caused by responses to the new coronavirus.
China's Caixin manufacturing index, a private gauge of factory
activity tilted toward small and private companies, is expected to
show another month of expansion in July. An official gauge last
week beat expectations, signaling the country's economic recovery
remained on track.
Japan releases a second revision for January-to-March gross
domestic product. Earlier data showed the economy contracted at an
annualized 2.2% pace. Economists expect downward revisions,
reflecting weaker-than-expected capital expenditures.
The Institute for Supply Management releases its U.S.
manufacturing index for July. Factory activity is expected to
improve for the third straight month as manufacturers rebound from
shutdowns and supply-chain disruptions.
The Bank of England is due to announce its latest policy
decision alongside updated forecasts for the U.K. economy.
Economists expect the BOE to keep policy on hold after cutting its
benchmark rate to a new low in March and stepping up its
bond-buying programs to cope with the fallout from Covid-19.
U.S. jobless claims rose for two straight weeks in July. Figures
for the week ended Aug. 1 will be scrutinized to see if the labor
market is signaling another rise in layoffs while Covid-19 cases
China's customs bureau releases trade data for July. Import and
export figures will be closely watched as a gauge of Chinese demand
for foreign goods and the rest of the world's demand for Chinese
Japan's household spending for June is expected to have declined
8%, according to a survey by data provider Quick, compared with a
decrease of 16.2% in May. Shops and restaurants slowly reopened
after Japan lifted a nationwide state of emergency in late May.
U.S. employers are expected to add jobs for the third straight
month. Two potential problems: Recent gains won't be nearly enough
to recoup losses in March and April, and the pace of job creation
-- though elevated by historical standards -- appears to be slowing
as the recovery loses some steam.
(END) Dow Jones Newswires
August 02, 2020 15:14 ET (19:14 GMT)
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