The coming economy week: housing, inflation and the Fed
Remarks by Federal Reserve Chairman Jerome Powell at the central bank’s economic symposium in Jackson Hole on Friday close a full week of economic data.
The August surveys of purchasing managers in some of the world’s largest economies, including the United States, will offer the most recent insights into how the rapid spread of the Delta variant of Covid-19 is affecting the economic activity. Economists expect a slight slowdown in the expansion of the service sector in the United States and Europe and a decline in activity in Japan and Australia.
Home prices in the United States hit a record high in June amid a housing boom that pits low mortgage rates and high demand against the limited supply of homes for sale. Economists forecast a slight decline in sales of existing homes in July, to an annual pace of 5.83 million from 5.86 million a month earlier, as pricing and supply constraints block more potential buyers out of the market. Marlet.
Unemployment claims in the United States fell to a new pandemic low during the second week of August, a sign that the labor market continues to improve despite the increase in Covid-19 cases and hospitalizations. Economists expect little change in jobless claims during the week ended August 21, a result that would suggest layoffs remain fairly stable over the summer.