1. Japanese Gross Domestic Product
2. Japanese Current Account Balance
3. UK Producer Price Index

Japanese Gross Domestic Product (MoM, YoY) (2Q F) (23:50 GMT, 19:50 EDT)
Consensus:  0.4% MoM, 1.5% YoY
Previous:  0.3% MoM, 1.1% YoY

Outlook: The final GDP figures for Japan will most likely show that there was an initial underestimate.  Second quarter growth figures are expected to check in at 1.5% y/y, which is an upward revision to the August 12th estimate of 1.1%.  The revision will be a result of an increase in spending by manufacturers, which accounts for 40% of Japan's GDP.  This increase in spending is expected to be in anticipation of higher demand for electronic goods in both domestic and international markets.  Meanwhile nominal growth will likely be 0.1% as deflation slows.

Previous: During the first quarter, Japan's economy grew at a rate of 1.1% on stagnant growth in domestic demand, despite an upturn in exports.  Lower public sector spending coupled with a surprising decline in inventories account for most of the shortfall between actual growth rate and market expectations.  When deflation is taken out of the equation, the economy did not grow at all.

Japanese Current Account Balance (July) (23:50 GMT, 19:50 EDT)
Consensus:  ¥1580.0B SA, ¥1414.6B NSA
Previous:  ¥1086.6B SA, ¥1503.5B NSA

Outlook: Japan's current account balance is expected to be smaller than July's surprise on a seasonally adjusted basis but tops June's surplus on a non-seasonally adjusted basis, as July's surplus generally exceeds June's.  The seasonally adjusted decline in the surplus can be attributed to higher import costs as energy and raw material prices continue to climb.  Japan's producer price index rose 1.5% in July despite rampant deflation elsewhere in the market.  Japan imports almost all of its energy and raw material, so higher prices generally result in decreased current account surplus.

Previous: Japan's current account balance unexpectedly rose in June as exports grew faster than expected.  Higher import costs associated with climbing crude oil prices did not affect the current account balance as much as economists had anticipated.  While imports rose 1.9%, exports expanded at a convincingly faster pace of 3.9%.  Machinery orders surged 11.1%, more than twice the amount expected, accounting for much of the upside surprise.

UK Producer Price Index (SA) (August) (9:30 GMT, 4:30 EDT)
Consensus:  (input) 1.4% MoM, 13.2% YoY; (output) 0.4% MoM, 3.0% YoY
Previous:  (input) 1.8% MoM, 13.5% YoY; (output) 0.7% MoM, 3.0% YoY

Outlook: Producer prices are expected to have increased at a slower pace in August as the price of raw materials moderated.  Producers are not expected to pass much of these higher prices on to retailers as consumer demand wanes.  This figure is important as the Bank of England tries to balance lackluster consumer spending and inflation.  On August 4th, the bank voted 5-4 to cut rates by 25 basis points to spark consumer spending despite inflationary pressures.  On September 9, the bank voted to leave rates unchanged.  Inflationary and growth figures including the producer price index are critical in October's rate decision.

Previous: The cost of raw materials necessary for UK production surged to the fastest annual pace in 20 years as oil prices hit yet a new high.  The 13.5% gain outpaced expectations of 12.2%.  Only 3.0% of this inflationary burden was pushed on to retailers, showing that producers faced decreased margins.  As the British economy slows and a pricing war looms, producers are absorbing most of the higher costs in their margins.