Shortened by Monday’s holiday, next week should offer a solid, if unspectacular, stream of economic announcements leading toward interest rate decisions due later in the month in both the United States and Canada.

Monday is a holiday for the markets in Canada. U.S. traders will be at the office, but there’s no economic data due out.

On Tuesday, building permit data is due in Canada. The U.S. will take the focus though, with productivity data and unit labour cost numbers.

BMO Nesbitt Burns warns that the slowdown in productivity and the resilience of compensation cost growth will spark talk that the productivity miracle was a mirage.

TD Bank economists agree, noting, “The fact that productivity dropped sharply in the first quarter of this year, and that next week’s release will probably reveal a meagre 1.4% annualized gain in the second quarter, will continue to raise doubts as to whether the long-term U.S. productivity shift is for real.”

TD insists that the miracle was no mirage. “The issue is not whether the cyclical component of productivity growth is intact — it certainly is — but whether the upward structural shift will re-emerge once an economic recovery gets underway. Not only does the research now overwhelmingly point in that direction, but the evidence is bearing it out. Productivity growth may have slowed dramatically during the current cycle, but it is still running well above the pace recorded during previous periods of economic weakness.”

Wednesday will see the Beige Book released in the U.S., an event that will have traders seeking signs of the Fed’s intentions at its August 21 rate meeting.

On Thursday, Canadian housing start data is on the schedule. Friday will likely to be the big data day, with the jobs report out in Canada, and the Producer Price Index numbers released in the U.S.

Inflation isn’t much of a concern in the U.S., so the PPI shouldn’t be a major event. Even so, “We should see unambiguously good inflation news next week,” says BMO Nesbitt Burns.

The Canadian jobs report will be closely watched, with economists calling for 5,000 new jobs, with the jobless rate rising to 7.1%. “Friday’s jobs data will be particularly crucial in sizing up prospects for the Canadian economy and consumer spending,” says CIBC World Markets.

“A decline or even an increase below the 5,000 consensus would make a 25 basis point cut on August 28 a virtual lock. Thursday’s housing data will also be of interest, shedding light on whether interest-sensitive spending is maintaining a head of steam.”

The short work week will also see a lighter earnings schedule. Monday and Tuesday are relatively earnings free.

On Wednesday, the ball starts rolling again with news due from CAE Inc., Canada Life, Canadian Natural Resources, Ensign Resource Service Group, Magna International, Oxford Property, Precision Drilling, Richland Petroleum, Rio Alto Exploration, Ritchie Bros. Auctioneers and Sleeman Brewing.

The market will hear from Anderson Exploration, Danier Leather Inc., Dorel Industries, Emera Inc., and Kingsway Financial on Thursday. The week wraps with news from CHIP and Residential Equities REITs, and Wajax Ltd.

Chuck Hill, director of research at First Call, says, “The good news about this week is there are not many companies reporting earnings. There are, however, a few items to worry about. Among the few reporting this week are Cisco Systems and Procter & Gamble, two companies whose comments will be eagerly awaited on Tuesday. What Cisco has to say about the outlook could be pivotal for the market on Wednesday.”