Global Economy Week Ahead: U.S. GDP Revisions and Other Data

The U.S. Commerce Department releases personal consumption data this week,a measure of household spending on everything from hospital stays to groceries.

The U.S. Commerce Department releases personal consumption data this week,a measure of household spending on everything from hospital stays to groceries. PHOTO: SCOTT OLSON/GETTY IMAGES

In the week ahead, the U.S. Commerce Department releases second-quarter gross domestic product revisions and July personal-income figures. Overseas, Brazil will see second-quarter gross domestic product data and China will release factory-activity numbers.

Wednesday: The Commerce Department releases its second estimate of second-quarter gross domestic product. In the original estimate, the Commerce Department reported that the value of all goods and services produced across the economy rose at a seasonally and inflation-adjusted annual rate of 4.1% in the second quarter, the Commerce Department. Economists surveyed by the Wall Street Journal forecast second-quarter gross domestic product increased at a revised 4.0% annual rate.

Thursday: The Commerce Department releases July personal income data. U.S. households’ incomes and spending both rose at a solid rate in June, indicating consumers have the capacity to drive gains in economic output. Personal consumption expenditures, a measure of household spending on everything from hospital stays to groceries, increased a seasonally adjusted 0.4% in June from the prior month, the Commerce Department said. Economists surveyed by the Wall Street Journal forecast consumer spending was up 0.4% in July, while incomes grew 0.3%.

Friday: Brazil has a data-heavy week, with second-quarter gross domestic product coming out on Friday at 8 a.m. EDT amid worsening forecasts. It was the quarter when a truckers strike brought the economy to a near-halt. Later, at 9:30 a.m., the central bank releases budget data amid a persistent fiscal crisis.

China releases its official gauge of factory activity for August. Economists expect the official purchasing manufacturing managers’ index to continue edging lower from July’s three-month low, as heavy rainfall disrupted production in some parts of China, adding to headwinds from the rising trade tensions with the U.S. It may take a few months for the government’s fiscal and monetary easing measures to eventually arrest slowing economic growth momentum, they say.

[“Source-wsj”]