2009.03.0208:44:00UTC+00U. S. - The Day Ahead

Monday, following events and reports are due for the rest of the day.

The results of the manufacturing survey of the Institute for Supply Management, which are based on data compiled from purchasing and supply executives nationwide, are due out at 10 AM ET on the same day. Economists expect the index to show a reading of 34 for February.

The manufacturing index rose to 35.6 in January from 32.9 in December. Nevertheless, the index was still in the contraction zone. While the index for new orders rose 10.1 points to 33.2, the production index increased to 32.1 from 26.3 in the previous month. The prices paid index rose for the first time since June, rising by 11 points to 29. According to IHS Global Insight, the level of the index will continue to move upward, but it will remain below 50 for at least the next few months, as companies work off excess inventories.

The Commerce Department's construction spending report to be released at 10 AM ET is expected to show a 1.5% decline in spending for January.

The December report showed a 1.4% drop in construction spending. More importantly, construction spending for October and November were revised down. Spending on private construction declined 1.7% compared to a 0.8% drop in spending on public construction. Among private construction, residential construction spending declined 3.2% and non-residential construction spending edged down 0.4%.

At 11.30 AM ET, Boston Federal Reserve Bank President Eric Rosengren is due to speak to bankers in at the National Association for Business Economics Washington Economic Policy conference.

Richmond Federal Reserve Bank President Jeffrey Lacker is scheduled to speak to economists in Arlington, Virginia at 12.45 PM ET.

Copyright(c) 2009 RealTimeTraders.com, Inc. All Rights Reserved