The release of U.S. inflation and employment data this week will set the stage for the U.S. Federal Reserve Board meeting on August 8.

On Monday, Statistics Canada releases data for gross domestic product for May. Economists forecast GDP growth of 0.2%, compared with 0.1% the previous month.

Meanwhile, the Conference Board of Canada releases its latest economic forecast, “Provincial Outlook — Summer 2006.”

On Friday, Statistics Canada releases the labour force survey for July. Economists expect the unemployment rate was 6.1%, unchanged from the previous month. Payrolls are expected to rise by 25,000, compared with a decline of 4,600 a month earlier.

Meanwhile, the Ivey Purchasing Managers index for July is released. A reading of 53 is forecast, down from 62.2 the previous month.

South of the border

On Monday, the Chicago arm of the National Association of Purchasing Managers releases its index of manufacturing activity for July. A reading of 56 is expected, down from 56.5 the previous month.

On Tuesday, the U.S. Department of Commerce reports on construction spending for June. Economists expect an increase of 0.1%, compared with a decline of 0.4% the previous month.

Separately, Commerce releases data on personal income for June. Economists forecast an increase of 0.6%, compared with increase of 0.4% for the previous month.

On Thursday, the U.S. Commerce Department reports on factory orders for June. Economists expect a gain of 1.7%, compared with a gain of 0.7% a month earlier.

Meanwhile, the U.S. Department of Labor reports on initial jobless claims. Economists forecast 310,000 claims for the week ended July 29, compared with 298,000 the previous week.

Overseas, the Bank of England announces its interest rate decision, and the European Central Bank’s governing council meets and announces interest rate decision.

The U.S. Labor Department is slated to issue its employment report for July. Economists expect the unemployment rate to remain flat at 4.6%. Non-farm payrolls are expected to grow by 145,000 jobs, compared with a gain of 121,000 the previous month.

Corporate earnings

Second-quarter earnings season remains in full swing. Among the Canadian firm scheduled to report are: Domtar Inc.; Rogers Communications Inc. Barrick Gold Corp.; Alcan Inc.; BCE Inc.; Canadian Natural Resources Ltd.; Cascades Inc.; Enbridge Inc.; Extendicare Inc.; Great-West Lifeco Inc.; Pan American Silver Corp.; Pengrowth Energy Trust; RioCan Real Estate Investment Trust’ Torstar Corp.; Imperial Oil Ltd.; Suncor Energy Inc.; Jean Coutu Group (PJC) Inc.; Telus Corp.; Teranet Income Fund.; Brookfield Properties Corp.; Glamis Gold Ltd.; and Russel Metals Inc.