The December 13 week presents a packed data calendar, including a number of major economic data releases. The FOMC meets on Tuesday, but after the announcement of the Large Scale Asset Purchase program in November, the statement after this last meeting of 2010 should be fairly routine.
Tuesday’s Retail Sales data for November will be one of the most important. The weekly data on retail activity and the monthly same-store sales comparisons indicate that shopping was robust for the month. This should be reflected in stronger sales at department and specialty stores. Additionally, sales of motor vehicles remained at the strongest levels since August 2009 when the cash-for-clunkers program boosted levels. Prices of gasoline were also on the rise, and should mean higher spending at service stations.
The November Producer Price Index (PPI) and the Consumer Price Index (CPI) are scheduled on Tuesday and Wednesday respectively. Higher food and energy costs should be visible in the overall indices, but excluding food and energy there should be little upward pressure on prices.
Business inventories for October on Tuesday will incorporate the already reported 0.9% increase in factory stocks and the 1.9% gain in wholesale inventories with the new data on retail inventories. Wednesday’s November industrial production and capacity utilization is expected to be modestly higher, while levels of housing starts and permits issued for November will be reported on Thursday. The Conference Board's Leading Economic Index for November on Friday should incorporate positive contributions from supplier deliveries, money supply, interest rates and initial claims.
Initial jobless claims for the week ended December 11 is expected to...read more
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