This week in business: Fed minutes, services sector and employment updates
A look at some of the key business events and economic indicators upcoming this week:
Watching the Fed
The Federal Reserve on Wednesday releases the minutes from its interest rate policy meeting in June.
At the meeting, the central bank held is benchmark short-term rate steady. It had been raising rates at a feverish pace since 2022 to fight inflation, which has shown signs of cooling. The central bank is trying to gauge the ongoing impact to inflation and the economy from its rate increases and has signaled that it will likely raise rates twice more this year.
Services status
The Institute for Supply Management on Thursday releases its latest report on the services sector, which employs most Americans.
Economists expect the monthly index from the Institute for Supply Management to remain relatively steady in June after slipping for several months. The sector has remained resilient despite pressure from inflation, with readings above 50 signaling growth. The sector is being watched closely amid worries that the broader economy is slowing and could slip into a recession at some point in 2023.
ISM Services PMI (seasonally adjusted)
January 55.2
February 55.1
March 51.2
April 51.9
May 50.3
June (est.) 50.4
Source: FactSet
Eyes on jobs
The Labor Department on Friday delivers its June update of hiring by nonfarm U.S. employers.
Economists are forecasting that employers sharply reduced the number of added jobs from May. Hiring has been slipping since a standout showing in January. The job market has mostly remained resilient, though, despite high inflation and a slow-growing economy amid the Federal Reserve’s aggressive rate hikes. Analysts are watching closely to see if a slowdown portends economic trouble ahead.
Nonfarm payrolls, monthly change, seasonally adjusted:
Jan. 472,000
Feb. 248,000
March 217,000
April 294,000
May 339,000
June (est.) 263,000
Source: FactSet