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CNBC’s Shartia Brantley reports:
Last week, investors had to consider the Fed’s Beige Book and the June 2010 Small Business Sentiment report from the National Federation of Independent Business (NFIB) among other key economic reports.
The Federal Reserve Open Market Committee concluded that the economy is improving, with consumer spending, tourism and business spending all on the rise. In comparison, small businesses are becoming more optimistic, according to the NFIB, but they are still reluctant to hire or buy equipment.
This week, investors await reports on housing, industrial production and inflation.
We’ll get our first look at the housing market since the April expiration of the First-Time Homebuyer tax credit, with the June 2010 Housing Market Index (HMI) from Wells Fargo and the National Association of Home Builders (NAHB). In May, builder confidence rose 3 points to a 22 reading, a level not seen since August 2007. Builders are hopeful that the tax credits will provide a boost to the housing market going forward.
On Wednesday, we’ll also get the May 2010 Housing Starts report from the Census Bureau. In April 2010, new home construction rose 5.8 percent month-to-month, and increased nearly 41 percent over last year.
The May 2010 Industrial Production report is also due Wednesday from the Federal Reserve. The report surveys production rates and output in the manufacturing, mining and utilities sectors. Production rates edged up 0.8 percent in April, marking a 6.0 percent year-to-year increase, while industrial output continued to rise to levels 5.2 percent over last year. The largest component of the surge in industrial activity is in factory production, while utilities are down.
Is inflation a concern? We’ll find out Thursday with the Labor Department’s May 2010 Consumer Price Index report (CPI), which tracks price changes for food, clothing, cars and other necessary items. Over the last year, the index has increased 2.2 percent, before seasonal adjustments. In April, inflation fell slightly by 0.1 percent due to lower energy costs and shifts in consumption.
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