Economics week ahead

Wells Fargo Research Team Wells Fargo

Next week will be busy. We expect consumer spending to rise 0.8% in August, while income growth of 0.5% and annual BEA revisions should show a resilient U.S. economy. The PCE deflator is expected to firm in August, although broader revisions should leave the recent inflation trend somewhat softer. On Friday, we expect payroll growth to moderate to 90K in September, with the unemployment rate holding steady at 4.1%.

Abroad, Canada's July GDP is expected to be essentially flat, consistent with an economy that is slowing but not contracting. We expect the Reserve Bank of Australia to raise its Cash Rate by 25 bps to 4.60%, which we view as the terminal rate. In Europe, Eurozone inflation likely ticked higher in September, keeping the prospect of another ECB rate hike on the table. In China, September PMI data should point to a slight improvement in manufacturing, while non-manufacturing activity is likely to remain subdued.

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Wells Fargo Research Team

Wells Fargo

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