As an overall, most of the economic data released so far from the world's largest economy is typically cheerful and better than the market forecasts, demonstrating an improvement throughout most of the economic sectors and showing clearly that a recovery is taking place gradually, still of course the major impediment is the present deteriorated labor market.

 

In fact, today's overall CPI data is forecasted to show an incline, having on one hand the CPI for August expected to come in at 0.3% from 0.0% and for the year ending August it is predicted to come in at -1.7% from -2.1%, whereas the CPI Ex Food & Energy may come inline with the prior reading at 0.1% whereas for the year ending August it may slightly decline to 1.4% from 1.5%.

 

In other words, this shows that the weighted average of prices to a fixed basket of goods and services are slightly rising to the upside, indicating that the demand improved in the country as it was already showed yesterday since this measurement of inflation is forecasted to incline, having in mind that the increase in the CPI reading is a very solid indicator of inflation that is associated with economical growth in the economy, and therefore it reflects the wellbeing state of the economy.

 

Plus, we should not forget that the yesterday's PPI reflected a slight economic enrichment as well as it showed that the inflationary pressures rose on a monthly base, having the PPI for August climbing up to 1.7%, while for the year ending August it plunged and came in at -4.3%, which is better for the present conjuncture and will permit the Feds to continue their encounter with the unending economic predicament.

 

Moreover, we should not forget that yesterday country's overall retail sales climbed to the upside unexpectedly, having advanced retail sales for August showing an incline as it came in at 2.7% and the retail sales less autos rose to 1.1%, which was better than the predicted reading of 0.0% and the prior revised reading of -0.5% from -0.4%, demonstrating that the retail sales of the country improved.

 

Now, turning to the second quarter reading of the Current Account Balance that will be released later on today, it is highly forecasted to show that its deficit may have narrowed to -92.0 billion from a deficit of -101.5 billion, demonstrating that the trading activity with the rest of the world is improving slightly and at a slow pace since the downside pressures of the recession remain present, while that the Net Long Term TIC flows for July may plunge to 60.0 billion

 

As for the present Industrial sector of the world's largest economy, it is predicted to show some improvement as today's Industrial Production for August is expected to climb up to 0.6% from 0.5% and the Capacity Utilization for the same month is expected to come in at 69.0% from a prior reading of 68.5%.