Economic Data Overview

Although there is plenty of economic data during the March 21 week, focus will likely still be on the release of the March employment data on April 1.

The release of the Richmond Fed's Manufacturing Survey for March on Tuesday should reinforce what the New York and Philadelphia Fed outlooks had to say about conditions in the factory sector. The components for new orders and employment should continue to signal expansion, and overall activity remains on the rise.

The report on new orders for durable goods in February is set for Thursday. Once more the transportation component will probably have the biggest impact on the headline number. Civilian aircraft orders were down for a second month in a row, and will contribute to softness in transportation, although that is likely to be offset by demand for new motor vehicles.

The final Reuters/University of Michigan Consumer Sentiment Index could well be revised lower from the 68.2 in the preliminary report. Consumers have been buffeted by horrendous news from the earthquake in Japan and the subsequent volatility in financial markets. Gasoline prices also have remained high.

Initial claims for the week ended March 19 are expected to be in line with recent weeks, showing a modest downward trend for initial claims, and steady declines in continuing and extended benefits. The labor market is mending, albeit at a slow pace.

The BLS will release February data for mass layoff activity on Tuesday and for state unemployment on Friday. Outside of the government sector, layoff activity has returned to...Read more