Key Economic events for the week Aug'27

Consumer Confidence The preliminary August University of Michigan Consumer Sentiment index showed an improvement over last month’s levels, indicating that an upward movement is to be expected. The gain in July payrolls, stronger equity markets, and mellower news headlines are all supportive for consumer confidence as well.

GDP QoQ (Q2) New and revised data points to an upward revision to Q2 real GDP growth to a 1.7% annual rate vs 1.5% reported last month. Net exports are expected to make a larger positive contribution to Q3 growth as imports slowed more than the BEA assumed in its first estimate and exports came in stronger.Q3 real GDP growth appears to be tracking around a 1.9% pace.

Bernanke Speaks in Jackson Hole Bernanke will speak on The Changing Policy Landscape at the Kansas City Fed’s Jackson Hole symposium. The Fed strengthened its bias to ease policy at the August FOMC meeting as indicated in the minutes, wherein it was reported that “many members judged that additional monetary accommodation would likely be warranted fairly soon unless incoming information pointed to a substantial and sustainable strengthening in the pace of the economic recovery.”