5 Things to Watch on the Economic Calendar This Week

In the upcoming week, investors will closely monitor U.S. economic reports to assess whether the country’s economy can sustain a potential rate hike in the months ahead, with particular attention on Friday’s retail sales figures.

Additionally, China is set to release key trade and inflation data, as concerns persist over the stability of its economy, which is the second largest in the world.

In Germany, preliminary data on economic growth for the second quarter will be published on Friday, providing further insights into the strength of the euro zone’s economy.

Traders in the U.K. will be looking for a manufacturing production report to gain better understanding of the economic landscape following Britain’s decision to exit the European Union.

Outside of the G7 nations, market participants will be awaiting a monetary policy announcement from the Reserve Bank of New Zealand on Wednesday, amid rising expectations for an interest rate cut.

Here’s a summary of five significant economic events to watch for in the coming week:

1. U.S. July Retail Sales Report
   The Commerce Department will release its July retail sales data on Friday at 12:30 GMT (08:30 AM ET). The consensus forecast anticipates a 0.4% increase in sales, following a 0.6% rise in June. Retail sales are a crucial indicator of economic health, with consumer spending comprising approximately 70% of U.S. economic growth.

2. Chinese Trade Data for July
   China will publish its trade figures for July at around 02:00 GMT on Monday (10:00 PM ET Sunday). The report is expected to show that the trade deficit narrowed to $47.6 billion from $48.1 billion in June. Exports are forecast to decline by 3.0%, while imports are projected to fall by 7.0%. Additionally, reports on consumer and producer price inflation are due on Tuesday.

3. German Second Quarter GDP
   Germany’s preliminary GDP report will be released on Friday at 06:00 GMT (02:00 AM ET). It is anticipated that the economy will grow by 0.3% in the second quarter, a slowdown from 0.7% in the previous quarter. A revised estimate for euro zone GDP will be available shortly after.

4. U.K. June Manufacturing Production
   The Office for National Statistics will issue data on U.K. manufacturing production on Tuesday at 08:30 GMT (04:30 AM ET). A decline of 0.2% is expected, with overall production predicted to rise slightly by 0.1%. The Bank of England’s recent interest rate cut aims to mitigate potential economic downturn following Brexit.

5. Reserve Bank of New Zealand Rate Decision
   The Reserve Bank of New Zealand is expected to announce its monetary policy decision on Wednesday at 21:00 GMT (05:00 PM ET). Analysts largely anticipate a 25 basis point reduction in rates to a record low of 2.0%, aimed at bolstering economic growth.

Stay informed about all economic events happening this week to navigate the market effectively.