Reports to Watch

The week is full of key economic data from a variety of sectors.

• Although not an economic report, the Fed’s Beige Book releases Wednesday, giving anecdotal information on business and economic conditions across the country.
• Thursday brings wholesale inflation via the Producer Price Index (PPI) as well as the usual weekly Initial Jobless Claims.
• The Consumer Price Index (CPI), Retail Sales and Consumer Sentiment Index are scheduled for Friday.

X Factor

Economic growth and inflation were central to discussions when the Federal Open Market Committee (FOMC) met in June. This week’s reports will round out second quarter activity.

Retail Sales in May saw the biggest decline since January 2016, falling 0.3 percent from April. Sales for motor vehicles and discretionary spending both fell. Retail Sales are an important indicator of our nation’s economy because consumer spending makes up nearly two-thirds of economic activity. On a positive note, Retail Sales were up nearly 4 percent year over year.

Consumer inflation remained tame in May as measured by the Consumer Price Index (CPI). Year over year, CPI fell to 1.9 percent after hitting 2.7 percent four months prior. The Producer Price Index, which measures wholesale inflation, was unchanged in May due to lower energy costs.

This week’s reports on Retail Sales and inflation, among other things, tee up two weeks of data before the FOMC meets again July 25 and 26 to issue a stance on economic growth, short-term interest rates and trimming the Fed’s $4 trillion balance sheet … all of which can influence the direction of Bond prices and the home loan rates tied to them.

Mortgage Market Guide stays on top of the numbers, the headlines and the market reaction to keep you informed, so stay tuned.

For more detailed information and insight, view the Economic Calendar, the Daily Market Update and Guidance, and our exclusive Market News. And don’t forget, you can easily download the Economic Calendar to your Outlook Calendar to make sure you don’t miss important economic releases. Just click here to read instructions for downloading to Outlook.