Investors’ attention this week will be focused on the purchasing managers indexes for the manufacturing and services sectors, presenting the outlook for the entire U.S. economy. But the pinnacle of the week is the job market data deluge, coming on Friday, which will shed some light on last month’s developments in terms of jobs created and lost, as well as wage increases. These and other reports will help shape expectations of the Federal Reserve’s monetary decisions in the months ahead.
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Here are three economic events that could affect your portfolio this week. For a full listing of all upcoming economic events, check out the TipRanks Economic Calendar.
» July’s ISM Manufacturing PMI – Tuesday, 8/01 – the report, released by the Institute for Supply Management, shows business conditions in the U.S. manufacturing sector. It is a significant indicator of the overall economic conditions. PMIs are considered to be one of the most reliable leading indicators for assessing the state of the U.S. economy, helping analysts and economists to correctly anticipate changing economic trends.
» July’s ISM Services PMI – Thursday, 8/03 – the report, released by the Institute for Supply Management, shows business conditions in the U.S. services sector, the largest and most important GDP contributor. The ISM Services PMI is a forward-looking indicator, providing an important insight into the factors that influence the GDP growth and the inflation. When the business activity index rises, investors may assume that the stock markets will increase because of higher anticipated company earnings.
» July’s Nonfarm Payrolls and Unemployment Rate – Friday, 8/04 – The Nonfarm Payrolls and Unemployment reports, released by the U.S. Bureau of Labor Statistics, present the number of new jobs created during the previous month, and the percentage of people that were actively seeking employment in the previous month. These reports are considered two of the most important economic indicators, as policymakers follow the shift in the number of positions since it is strongly associated with the health of the economy as a whole. One of the mandates of the Federal Reserve is full employment, and it takes labor market changes into account when determining its policy decisions, which influence the capital markets.
