There were quite a few headlines for investors to sift through last week. The economy grew by 1 percent in the spring, much less than previously expected. New home sales fell nearly 1 percent in July to their lowest level in 5 months, highlighting a weak recovery. New claims for jobless benefits rose by 5 thousand to 417 thousand, but not at the level to signal a recession.
In the week ahead, we’ll get a read on consumers with earnings reports from Dollar General, Barnes and Noble and Campbell Soup. We also expect data on jobs, home prices and consumer confidence.
We’ll gain insight on the economy with the august jobs report. In July the unemployment rate dipped slightly to 9.1 percent, as 117 thousand jobs were added. African American unemployment fell to 15.9 percent, and black teen unemployment declined to 39.2 percent – the third month of improvement but remains by far the highest of any group.
We’ll check on housing with the June Case-Shiller home price index report, which tracks price changes in metro areas such as Atlanta, New York and Tampa. In May, home prices rose 1 percent from the previous month as we entered the spring and summer home buying season.
Do you feel about the economy? We’ll find out with the August consumer confidence report. In July confidence rose to a 59.5 reading as consumer concerns about their jobs and finances calmed down a bit. Consumer confidence is a gauge of consumer spending.