The U.S. employment report for July is the focus of this week’s economic indicators.
MONDAY
The Institute for Supply Management’s manufacturing index for July is expected to remain elevated as factory activity continues to expand. American manufacturers are enjoying strong demand from businesses and consumers, but struggling against supply-chain disruptions and shortages of workers and materials.
WEDNESDAY
The Institute for Supply Management’s services index for July is likely to reflect another month of increasing activity across the sector. Americans have shifted spending away from goods and toward in-person activities as vaccinations increase and Covid-19 restrictions are relaxed, though an upswing in cases related to the Delta variant has injected uncertainty into the outlook.
THURSDAY
The Bank of England is expected to stand pat on monetary policy. Economists are looking for BOE officials to revise their inflation forecast higher, but hold off on any major moves while the outlook remains clouded by the recent spike in Covid-19 cases.
The U.S. trade deficit likely widened in June. Preliminary figures already show record goods imports during the month as Americans buy more from overseas while the economy expands and domestic producers struggle to keep up.
