Global Economy Week Ahead

WSJ
A woman picking up a to-go order at a Minneapolis restaurant earlier this year.
A woman picking up a to-go order at a Minneapolis restaurant earlier this year. Photo: Evan Frost/Associated Press

In the week ahead, the U.S. will see data on service-sector activity, producer prices and consumer sentiment. The Federal Reserve will publish its policy statement.

Monday: The Institute for Supply Management releases its nonmanufacturing index for October. The agency said in its last report that its nonmanufacturing index rose to 61.6 in September, the highest reading on record going back to 2008. Much of the sector’s September growth appeared to come from positioning in preparation for the Trump administration’s tariffs and retaliatory tariffs by other countries. Economists surveyed by The Wall Street Journal forecast the ISM nonmanufacturing index clocked in at 59.5 in October.

Thursday: The Fed is likely to leave rates unchanged at its two-day policy meeting concluding Thursday. Recent reports showing strong job gains and economic growth give the Fed little reason to materially change the statement, and the recent selloff in stock markets doesn’t appear large enough to warrant extra attention from the central bank.

Friday: The Labor Department releases the October producer-price index report. In September, the gauge of business prices showed signs of bouncing back after a slowdown this summer. The index increased a seasonally adjusted 0.2% in September from a month earlier. Economists surveyed by The Wall Street Journal expect producer prices to have climbed 0.3% last month.

The University of Michigan publishes preliminary consumer-sentiment data for November. In October, consumer sentiment fell, but remained elevated. The consumer-sentiment index was 98.6, ticking down from an initial 99.0 reading published earlier in the month. Economists surveyed by the Journal forecast a preliminary November sentiment reading of 97.0.

Write to Sarah Chaney at sarah.chaney@wsj.com

Appeared in the November 5, 2018, print edition as ‘Economic Calendar.’

https://www.wsj.com/articles/global-economy-week-ahead-service-sector-activity-producer-prices-consumer-sentiment-1541361600?mod=pls_whats_news_us_business_f

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