Upcoming key business events and economic metrics for next week will offer insights into market trends and consumer sentiment across various sectors.
On Tuesday, the Conference Board will publish its latest report on consumer confidence. Analysts anticipate that the consumer confidence index may show a continued decline in February. This index provides a gauge of how Americans view current economic conditions and their expectations for the next six months. Despite ongoing inflationary pressures, consumer confidence and expenditure have remained fairly robust.
Here’s how consumer confidence has varied month-to-month:
– September: 99.2
– October: 109.6
– November: 112.8
– December: 109.5
– January: 104.1
– February (estimate): 102.6
Wednesday will see the Commerce Department release its monthly update on new home sales in the United States. Economists predict a slight downturn in sales for January, estimating an annualized rate of 680,000 homes sold. The previous month, sales showed an increase. The overall housing market continues to present challenges due to high mortgage rates combined with strong demand and not enough new and existing homes available in the market.
The estimated seasonally adjusted annual rate of new home sales over recent months is as follows:
– August: 691,000
– September: 726,000
– October: 615,000
– November: 674,000
– December: 698,000
– January (estimate): 680,000
On Friday, the Commerce Department will unveil critical consumer inflation figures. Economists expect these numbers to indicate a slight reduction in inflation for January. As of September, the inflation rate had dropped to 2.1%, just above the Federal Reserve’s preferred target of 2%, yet has been trending upwards since then.
The annual percentage change for the PCE Deflator, adjusted for seasonal variations, is projected as follows:
– August: 2.3%
– September: 2.1%
– October: 2.3%
– November: 2.5%
– December: 2.6%
– January (estimate): 2.5%
These upcoming reports are essential for understanding the economic landscape and making informed decisions in both consumer spending and business investment.
