MNI Global Week Ahead September 27 – October 1

Key Things to Watch:

• Thursday, September 30 – German Inflation
  • Inflation will continue to be a dominant theme in Germany in coming days, with annual rates expected to push even higher. Preliminary harmonized readings are expected to see German inflation rise to 3.9% y/y in September, up sharply from the already elevated 3.4% seen in August.
  • From a communications perspective, the rise in domestic prices to 4.1% y/y will create problems for the ECB, with a notoriously inflation-resistant German public growing increasingly antsy about higher prices.

• Friday, October 1 – U.S. ISM Manufacturing
  • U.S. manufacturing activity slowed in September as ongoing supply chain disruptions and severe storms through the month hampered production.
  • The ISM manufacturing index slowed slightly in September, according to Bloomberg, falling to 59.5 from 59.9 in August.

• Friday, October 1 – U.S. Personal Income
  • Goods spending increased through September as the spread of the Delta variant put downward pressure on demand for services. Personal spending likely rose 0.6% in September following a 0.3% gain in August, according to Bloomberg.
• The effects of stimulus earlier in the year have waned significantly, but that weakness could be partially offset by higher wages offered amid the ongoing labor shortage, with Bloomberg forecasting a 0.2% increase in personal income in September compared to a 1.1% gain in August.