Summary
United States: Cracks Starting to Emerge?
- After a strong run last week, this week’s barrage of economic data brought expectations back down to Earth. Durable goods orders seem to be stagnating as high mortgage rates keep the housing market under pressure. Meanwhile, preliminary benchmark revisions from BLS reveal that the labor market is not as scorching as previously thought.
- Next week: Personal Income & Spending (Thu.), Employment (Fri.), ISM Manufacturing (Fri.)
International: European Economic Prospects Getting Dimmer
- This week’s PMI surveys from Europe pointed to the growth challenges facing Europe’s key economies and highlighted the risk of a renewed stumble across the Eurozone. Of particular note, the August service sector PMIs returned to contractionary territory as the Eurozone services PMI fell to 48.3, and the U.K. services PMI fell to 48.7.
- Next week: China PMIs (Thu.), Eurozone CPI (Thu.), Canada GDP (Fri.)
Topic of the Week: What Would a “Hard Landing” in China Portend for Other Major Economies?
- Some observers worry that the debt build-up in China’s property sector may lead to an economic “hard landing” in the world’s second-largest economy. We analyze what effects a significant economic slowdown/downturn in China may have on the U.S., Eurozone and Japanese economies.
