Weekly Economic Calendar

February 25-29, 2008

                                                                                                            Consensus       Prior

Monday, 2/25

            January Existing Home Sales                                            4.81M             4.89M

Expected to decline -1.8% MoM to a new cycle low

                        Pending home sales in December were weak, falling -1.5% MoM

                        Existing home sales have fallen -24% YoY

                        Weakness is evenly distributed among all 4 major geographic regions          

                        Fed Governor Kroszner speaks on Risk Management

                        Fed Governor Mishkin speaks on Stabilizing Inflation

Tuesday, 2/26

            January Producer Price Index                                MoM   +0.3%             -0.1%

                                                                                                YoY     +7.5%             +6.3%

                        Core PPI (Ex- Food and Energy)                 MoM   +0.2%             +0.2%

                                                                                                YoY     +2.2%             +2.0%

                        Headline PPI expected to exceed November’s 25+ year high of 7.2% YoY

Annual Core PPI growth running slightly above 12m average of 1.9%

Food prices expected to rise sharply in January, up +.6-.7% MoM

Seasonal adjustments may cause gasoline prices to fall again (-4.8% MoM in December)

                        Fewer vehicle incentives may push up car and truck prices, and core PPI

                        PPI more impacted by commodity prices than CPI

            December 20-City Case-Shiller Home Price Index  YoY           -9.8%              -7.7%

                        Expected to decline -1.5-2% MoM in December

                       

            4^th Qtr National Case-Shiller Home Price                       YoY                             -4.5%

                        Decline expected to accelerate to -6.7% YoY from -4.5% YoY in 3^rd qtr

            February Consumer Confidence                                        82                    87.9

                        Expected to plunge to a 4y low as economic growth deteriorates

                        Present situation index has fallen over 5 of last 6 months

February Richmond Fed Manufacturing Index                -7                     -8

4^th Qtr OFHEO Home Price Index                         QoQ   -1%                 -0.4%

Expected to show a record quarterly decline and first annual decline since series started in 1975

Actual YoY drop for 2007 expected to be -1.1%

A -1% quarterly decline annualizes to a -4% YoY deterioration in prices

            Fed Vice-Chairman Kohn speaks on U.S. Economy and Monetary Policy

Wednesday, 2/27

            January Durable Goods Orders                             MoM   -4%                 +5%

                        Ex-Transportation                                        MoM   -1.3%              +2.3%

Sharp decline in Boeing aircraft orders (65 vs 287) will reverse December’s headline strength, which was broadbased

Transportation orders likely fell by 10% MoM

Machinery and tech orders also expected to retrench, pulling down

ex-transportation growth (machinery orders grew +7.3% MoM in Dec)

ISM Manufacturing new order growth has been slowing as sentiment becomes more gloomy

            January New Home Sales                                                   600k                604k

                        Only a -0.7% ease expected following December’s -4.7% drop

                        Single-family permits are at lowest level since 1991 recession

New home sales have been falling even faster than existing home sales, and are down -41% YoY

Slight improvement seen in NAHB index past two months (20 vs 18)

Fed Chairman’s Semi-Annual Report to Congress on Economy and Fed Policy       

New FOMC forecast just released which reduced 2008 GDP growth to 1.3-2% range, pushed unemployment higher to 5.2-5.3% by the end of year, and raised inflation expectations (see PCE data below)

Presents to House on Wednesday, Senate on Thursday

            Fed Governor Mishkin speaks on Importance of Financial Literacy

Thursday, 2/28

            Initial Jobless Claims                                                          350k                349k

                        Continuing Claims                                                  2773k              2784k

                        Jobless claims’ 4-week average has risen rapidly over past month to 361k

            Preliminary 4^th Qtr GDP                             Annualized    +0.8%             +0.6%

                        Slight improvement expected, mainly due to higher export growth

                        Domestic consumer demand expected to weaken

            Preliminary 4^th Qtr Personal Consumption                     +2%                +2%

            Preliminary 4^th Qtr GDP Price Index                                +2.6%             +2.6%

            Preliminary 4^th Qtr Core PCE QoQ                                  +2.7%             +2.7%

            January Help Wanted Index                                               21                    22

                      

Friday, 2/29

            January Personal Income                                                    +0.2%             +0.5%

                        Sluggish growth expected as labor demand softens

                        Aggregate payroll hours fell -0.3% while hourly wages rose +0.2%

            January Personal Spending                                                            +0.2%             +0.2%

                        Weak vehicle and home improvement sales impeding growth

Real (inflation adjusted) sales are likely to have been flat, as higher prices account for all of increase in nominal sales

           

January PCE Deflator                                             YoY     +3.5%             +3.5%

                        Running well above Fed’s new target of 2.1-2.4% annual growth

            January Core PCE                                                   MoM   +0.2%             +0.2%

                                                                                                YoY     +2.2%             +2.2%

Core growth at upper edge of Fed’s forecast of 2-2.2% annual growth

            February Chicago Purchasing Manager                           49.7                 51.5

                        Large declines seen in Empire and Philly Fed indexes recently

            Final February U of Michigan Consumer Confidence    70                    69.6

Preliminary reading fell a huge -8.8 points from Janaury with current and future expectations falling around 9 points

ABC/Washington Post survey holding steady at lows

1-year inflation expectations popped up to 3.7% from 3.4% last month

U.S. Monetary Policy Forum

Fed Governor Mishkin and Boston Fed President Rosengren speak at panel on “Leveraged Losses:  Lessons from the Mortgage Market Meltdown”

Atlanta Fed President Lockhart speak at panel on “The Subprime Crisis – Is it Contagious?”

Chicago Fed President Evans and St. Louis Fed President Poole speak at panel on “Balancing Financial Stability, Price Stability and Macroeconomic Stability”