Wall Street is scheduled to receive several economic reports and government records in the coming week, including a detailed account of the Federal Reserve’s recent decision to increase interest rates. These reports, covering the services sector, unemployment, and consumer sentiment, are expected to provide data on how businesses and households are responding to inflation.
The series of updates follows recent economic data showing that U.S. employers added 29,000 jobs, which was reported as a disappointing figure alongside a climb in the unemployment rate. Additionally, mortgage rates recently reached their highest level in nearly three years. The upcoming reports will provide a comparison to these trends as the new month begins.
On Monday, October 5, the Institute for Supply Management will release its service sector index for September. This report measures whether the sector, which represents the majority of U.S. economic activity, is expanding. On Wednesday, October 7, the Federal Reserve will release the minutes from its most recent meeting, detailing the discussions that led to the interest rate hike.
The scale of the economic impact is reflected in the upcoming consumer sentiment survey from the University of Michigan, scheduled for Friday, October 9. This survey tracks how households perceive the economy and their own financial security. Previous data from September indicated that households were specifically concerned about the cost of fuel and high inflation, which directly affects the purchasing power of every U.S. household budget. For the services sector, which encompasses most business activity in the country, the expansion or contraction reported on Monday will signal the general direction of economic growth or slowdown.
The release of the Federal Reserve minutes on Wednesday provides a specific look at the internal logic used to set interest rates, which determine the cost of borrowing for home mortgages, car loans, and business credit. Following the release of these figures, investors and policy analysts will look for signs of future rate changes. The University of Michigan’s October sentiment survey will serve as a final indicator for the week, showing if consumer confidence has shifted since the concerns reported in September. The exact figures for October sentiment and the services index were not yet known at the time of reporting.