Economic Indicators Point to Resilience in Major Economies

Next week will be marked by significant economic indicators that will provide insight into the health of major economies. In the United States, consumer spending is expected to rise 0.8% in August, while income growth is forecasted at 0.5%. Additionally, annual revisions from the BEA should show a resilient U.S. economy.

The Personal Consumption Expenditures (PCE) deflator is anticipated to firm up in August, but broader revisions may indicate that recent inflation trends are slightly softer. On Friday, payroll growth is expected to moderate to 90K in September, with the unemployment rate holding steady at 4.1%.

Abroad, Canada's July GDP is forecasted to be flat, indicating a slowing but not contracting economy. In Australia, the Reserve Bank is likely to raise its Cash Rate by 25 bps to 4.60%, which is viewed as the terminal rate. The European Central Bank (ECB) may consider another rate hike due to Eurozone inflation ticking higher in September.

In China, September PMI data should point to a slight improvement in manufacturing activity, while non-manufacturing activity remains subdued.