Key jobs report may motivate Fed to act

This week’s jobs report will be the last the Federal Reserve reviews before meeting next month, and it could force Fed policymakers to at least consider lifting interest rates. The employment survey highlights a smorgasbord of economic news.

Consumption has been the economy’s workhorse, rising sharply through the spring. Disappointing July retail sales suggest overall spending may have slowed last month. But sales of vehicles and energy services were strong. As a result, economists look for just a mild pullback, with the Commerce Department expected to report Monday that personal spending rose a solid 0.3% in July.

Consumer confidence has been hovering at a healthy but tempered level. Yet uncertainty over the presidential election and weak economic growth in recent quarters “could weigh on confidence,” says Nomura economist Lewis Alexander. Economists expect the Conference Board on

Tuesday to record a modest decline in its consumer confidence index.

Manufacturing has languished at the other end of the economy’s spectrum. Economists expect the Institute for Supply Management to report Thursday that its index dipped in August.

The labor market has been a study in volatility, with two weak months followed by two months of blockbuster job gains in June and July.

August’s total, released Friday, could reveal whether a slowdown is underway.