U.S. President Barack Obama will meet with the heads of the U.S. banking system to discuss the administration's recent initiatives to support the financial system, while traders will receive the Personal Income and Spending Report from the U.S. Commerce Department on Friday.
The U.S. Personal Income and Spending report is the main economic data point of the day, with economists expecting core PCE, the Fed's preferred inflation measure, to rise 0.2% month-over-month in February after a 0.1% gain in January, leaving the annual inflation rate at 1.6%. Economists also expect personal income to decline 0.1% month-over-month following a 0.4% gain in January. Personal spending is expected to rise 0.2% month-over-month after the previous 0.6% gain.
At 10 a.m. EDT, Reuters and the University of Michigan will release the final consumer sentiment index for March. Economists expect a 0.2 point upward revision to 56.8 compared to the preliminary reading. Also of interest will be the current assessment and expectations index which were 62.3 and 53.0 respectively in the preliminary report, as well as one-year inflation expectations, which was predicted at 2.2% in the preliminary report.
U.S. President Barack Obama will host a meeting at noon EDT with banking executives to discuss the administration's plans to repair the U.S. financial system. Recently, Capitol Hill has tried to shift its harsh rhetoric towards corporate America in a bid to encourage private sector investment in the U.S. Treasury's public-private toxic debt program.
At some point on Friday, German authorities will release a preliminary look at national CPI inflation for March. Economists expect a 0.1% month-over-month increase in prices following a 0.6% gain in February for the month, resulting in an annual inflation rate of 0.7% versus 1.0% the month prior. HICP is expected to rise 0.1% month-over-month following a 0.7% previously, resulting in an annual inflation rate of 0.7% versus the 1.0% reading the month prior.
All times in EDT.
8:30 US Personal Income February Exp: -0.1% Prior: +0.4%
8:30 US Personal Spending February Exp: +0.2% Prior: +0.6%
8:30 US PCE Deflator (Y/Y) February Exp: +0.8% Prior: +0.7%
8:30 US PCE Core (M/M) February Exp: +0.2% Prior: +0.1%
8:30 US PCE Core (Y/Y) February Exp: +1.6% Prior: +1.6%
10:00 US Reuters/University of Michigan Consumer Sentiment March Final Exp: +56.8 Prior: +56.6
DE Consumer Price Index (M/M) March Preliminary Exp: +0.1% Prior: +0.6%
DE Consumer Price Index (Y/Y) March Preliminary Exp: +0.7% Prior: +1.0%
DE CPI - EU Harmonised (M/M) March Preliminary Exp: +0.1% Prior: +0.7%
DE CPI - EU Harmonised (Y/Y) March Preliminary Exp: +0.7% Prior: +1.0%
By Erik Kevin Franco and edited by Stephen Huebl
©CEP News Ltd. 2009