The US employment report for July is at the center of this week’s economic indicators.
The Institute for Supply Management’s production index for July is expected to remain elevated as factory activity continues to expand. American manufacturers are enjoying strong business and consumer demand, but are struggling with supply chain disruptions and a shortage of manpower and materials.
The Institute for Supply Management’s services index for July should reflect another month of increased activity across the sector. Americans have shifted spending away from merchandise and towards personal activities as vaccinations rise and Covid-19 restrictions eased, although an upswing in Delta-related cases has unsettled the outlook.
The Bank of England is expected to hold out on monetary policy. Economists are looking for BOE officials to revise their inflation forecast upward, but are holding back major moves while the outlook remains clouded by the recent surge in Covid-19 cases.
The US trade deficit likely widened in June. Preliminary figures already show record imports of goods during the month as Americans buy more from overseas as the economy expands and domestic producers struggle to keep up.