Economic indicators for week starting October 11

In the United States, one of the most important economic indicators is the inflation data, which should underline the lack of inflationary pressure. Core inflation as measured by the Consumer Price Index is expected to remain entrenched below one per cent year-on-year.

Other releases on the agenda include the minutes of the Federal Reserve rate-setting meeting, business inventories, trade balance and the Empire State Manufacturing Index, held on September 21. In the meantime, weak employment, earnings and the wealth effect, combined with deleveraging expected to keep retail spending weak. The University of Michigan Confidence is expected to show continued deteriorating sentiment, which may be compounded by the recent rise in energy costs.

The economic data in the eurozone, is expected to be more upbeat. The news will be dominated by figures on industrial production. Following in the footsteps of Germany, Finland, Spain and Portugal, tangible gains should also be registered for France and for the euro area as a whole in August. The inflation data should show that increases in energy prices are the main driver behind the year-on-year rate of change, whereas the core measure of inflation may even drift somewhat lower. Later on in the week, the trade balance figures for the month of August are also expected to be released.

In the United Kingdom, the International Labour Organisation (ILO) unemployment rate is expected to remain steady at 7.8 per cent. Meanwhile, also in the labour market, the jobless claims are expected to continue to rise due to public-sector job losses. Other data releases for the coming week also include inflation pressure for the month of September and the trade balances for the month of August.

This article has been prepared by Bank of Valletta p.l.c. (the Bank), which is licensed to conduct investment services business by the MFSA, for your general information only. This information is not a solicitation or offer by the Bank to acquire or sell securities. Nor does it constitute any form of advice by the Bank. Appropriate advice should be obtained before making any such decision. Past performance is not necessarily a guide to future performance and the value of your investments may fall or rise.