Upcoming U.S. Economic Data Insights: Focus on Consumer and Producer Prices

Market analysts eagerly await the upcoming U.S. economic data which could provide insights into the inflationary trajectory and economic health. Key releases will offer updates on the Consumer Price Index (CPI), Producer Price Index (PPI), and various other economic indicators. In particular, the data will shed light on small business sentiment, federal budget balances, jobless claims, retail sales, business inventories, import prices, manufacturing activity, industrial production, and consumer sentiment.

Consumer Price Index and Inflation

One of the most anticipated data releases is the Consumer Price Index for February. Analysts have predicted a monthly increase of 0.4%, slightly up from the previous 0.3%. Excluding food and energy, the forecast is for a 0.3% rise, compared to 0.4% in the prior month. Year-over-year, the CPI is expected to remain steady at 3.1%, with the core figure, which strips out food and energy, anticipated to see a slight dip from 3.9% to 3.7%.

Other Vital Economic Indicators

Other reports that merit attention include the Producer Price Index, which is also expected to show a 0.3% increase, consistent with the previous month's data. Core PPI, minus food and energy, is forecasted at 0.2%, showing slower growth compared to the previous 0.5%. The figures for retail sales are looking optimistic with an expected bump of 0.7% reversing the previous month's -0.8% drop, and the figure excluding autos expects a 0.4% rise. Additionally, economists will be watching the federal budget, jobless claims, business inventories, and the monthly federal budget deficit projected at -$250 billion.

Employment data will continue to be scrutinized with jobless claims for the week of March 9 predicted to be nearly steady at 216K. Manufacturing activity in New York, as measured by the Empire State Manufacturing Survey, is expected to remain in a contraction indicated by a forecast of -8. Industrial production and capacity utilization rate data will also be closely observed for indications of industrial activity and space for growth. Lastly, preliminary consumer sentiment for March will provide insights into consumer perspectives, with forecasts suggesting a slight improvement to 77.5.

inflation, economy, data