Economic alerts for Friday that could impact your trading

Previous: 54.7

Outlook:
The U.K. construction PMI looks to inch lower, as a slow housing market will
likely weigh on overall construction orders. Recent lending figures suggest
that low U.K. dwelling lending amounts will cap potential gains. The headline
figure has fallen in two consecutive months, down to 6.45 billion in July from
8.00 billion in May. The end of a decade-long surge in housing prices saw
values decline 0.2 percent on the month. On the commercial side of
construction, recent declines in business investment will likely drive the
CIPS PMI figure lower. Drops in consumer spending have made firms reluctant to
boost production, dampening levels of fixed capital expenditures. While
analysts expect the construction PMI number to remain in positive territory,
negative risks could potentially see a sizeable drop in growth.

Previous: The U.K.
CIPS construction PMI fell from 55.8 to 54.7 in July, declining off of the
previous month’s six-month high. Despite the drop, however, the three main
subsections of the survey data showed moderate gains. The strongest
appreciation could be found in the commercial sector, and housing activity
posted its best showing in six months. Despite the gain, however, experts
expect construction growth to retrace in subsequent months. Commodity prices
near record highs will likely crimp business spending, as it becomes more
expensive for firms to make further capital investments. High energy prices
likewise cut into consumers’ disposable income, cutting spending and
producers’ revenues. Moving forward, experts will monitor overall business
investments to gauge the direction of future growth.

Euro Zone Producer Price Index (July)(09:00 GMT,
05:00 EDT)

Previous: 0.5%

Outlook: Euro zone
producer price inflation looks to stay at elevated levels, as sky-rocketing
oil prices and a depreciated euro led input costs higher. Crude oil’s surges
to record-highs have continued to weigh on producers around the world, but the
effects on European producers are especially acute. Given that the commodity
is traded in U.S. dollars, a weakened euro only exacerbates price increases.
Producer price inflation is expected to stay at a high 4.0 percent on an
annualized basis. As such, it is important that consumer demand—