Manufacturing index: The week’s first piece of key data comes Tuesday with the Institute for Supply Management’s manufacturing index. Economists are looking for it to break through the key 50 level, from 48.9 in July, after generally upbeat regional manufacturing reports this month. Readings above 50 point to an expanding sector; those below 50 point to a contracting manufacturing sector. If the manufacturing index does push over 50, it would be the first time the sector has been in expansion since January 2008.
August unemployment: The most closely eyed data of the week, though, falls on Friday: the Labor Department’s August non-farm payrolls report. July’s report offered further evidence that the end of the recession is drawing near: Job losses tapered off, and the unemployment rate surprisingly dropped. Although the August jobless rate likely will have reversed course and ticked up, the number of jobs lost during that month is expected to have slowed.
Services sector report: On Thursday, the Institute for Supply Management will release its August figures on the services sector. Economists expect that index to improve as well but to remain below a reading of 50. Consensus is for the index to rise to 48.0 in August from the prior month’s 46.4.
Vehicle sales: Sales figures from the auto industry are due Tuesday. Auto sales are seen as surging in August on the successful “cash for clunkers” program; economists are looking for an increase to an annualized rate of 14.5 million total vehicle sales after 8.4 million in July.
Home sales: Another important report Tuesday will be pending home sales. Economists expect the National Association of Realtors’ index for pending home sales to rise for a sixth consecutive month, but just barely, in July, after climbing by 3.6 percent in June.
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