The first week of 2006 brings reports on the health of the Canadian and U.S. economies, including December employment data and the ISM manufacturing index.

Canadian and U.S. markets will be closed Monday to observe the New Year’s Day holiday.

On Wednesday, Statistics Canada reports on the industrial product and raw materials price indexes for November. Economists expect a drop of 0.5% and a drop of 2.0%, respectively.

On Thursday, the Purchasing Management Association of Canada and the Richard Ivey School of Business release their purchasing managers index for December. Economists expect a reading of 62.9

On Friday, Statistics Canada issues its labour force survey for December. Economists expect the unemployment rate to remain unchanged at 6.4%, with 20,000 new jobs created.

South of the border

On Tuesday, the U.S. Commerce Department reports on construction spending in November. Economists expect an increase of 0.7%.

Separately, the U.S. Institute of Supply Management issuests manufacturing index for December. Economists expect a reading of 57.

Also Tuesday, the U.S. Federal Open Market Committee will release minutes of its Dec. 13, 2005 meeting.

On Wednesday, the U.S. Commerce Department posts November factory orders. Economists expect an increase of 2.3%.

On Thursday, the U.S. Labor Department releases initial jobless claims for the week ending Dec. 31. Economists expect 320,000 new claims.

Separately, the U.S. Institute of Supply Management issues its services index for December. Economists expect a reading of 59.

On Friday, the U.S. Labor Department issues its employment report for December. Economists expect the unemployment rate to remain flat at 5%. Non-farm payrolls are expected to rise by 200,000 jobs.

Earnings

In corporate earnings, Wendy’s International Inc. reports results Friday. In December, the restaurant company announced it would spin off part of its iconic Canadian coffee chain Tim Hortons.

Other companies reporting include druggist Walgreen Co. on Tuesday, herbicide-maker Monsanto Co. on Wednesday, and liquor-marketer Constellation Brands Inc., which recently failed in a takeover attempt on Canada’s Vincor International Inc., on Thursday.