Looking Ahead: Week of August 13 through 17

The latest numbers were limited and mixed.  The best news was that exports are still growing.  This is good for the manufacturing sector.  The productivity numbers put company profit growth on the fence.  With unit labor costs trending low, a boost in output and revenues could lead to upside potential for profits.  But lack of output growth leaves profits languishing—bearing in mind that expectations for profits are rather low.

The consumer and manufacturing sectors have been wavering and we get news on those fronts.  The highlight of the week likely is an update on consumer spending with the retail sales report. Consumer sentiment also prints.  Manufacturing news posts with Empire State, industrial production, and Philly Fed.  Housing recently has shown modest improvement and the housing starts report could indicate if that trend continues.