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Investors Look Forward To Producer And Consumer Price Indexes Set For Release Next Week - Economic Preview

Friday, November 09, 2007 4:45:37 PM - Despite an uneventful week in terms of economic reports, the Dow suffered heavy losses and closed within 50 points of 13,000. More economic reports scheduled for release next week, as well as another speech from Federal Reserve Chair Ben Bernanke.

Monday, data on pending home sales for September will be released. To say that the housing market has been struggling would be a gross understatement, so the data is sure to attract attention.

Wednesday, Bernanke will speak at 9:10 am ET, at the Cato Institute annual monetary conference, in Washington.

Data on the Producer Price Index and Retail Sales for October will also be released Wednesday. The producer price index will show how much producers are paying for goods. Retail sales measure the total receipts at stores. Because consumer spending accounts for two-thirds of GDP, retail sales are a key measure of economic growth.

Thursday, the Consumer Price Index for October will be made public. The CPI the most widely followed indicator of inflation in the United States, a recent cause of concern for many Federal Reserve officials amid soaring oil prices and a slumping U.S. dollar. The Federal Reserve will follow the core CPI, due to its influence on the core PCE deflator.

Friday, industrial production for October will be released. The index measures the physical output of the nation's factories, mines and utilities. This sector accounts for less than 20 percent of the economy, but most of its cyclical variation. Investors pay close attention to the capacity utilization rate, which provides an estimate of how much factory capacity is in use.