Japanese Tankan All-Industries Capex (3Q) (23:50 GMT; 19:50 EST)
Consensus:         20
Previous:             21

Outlook: The headline Tankan Index reading for large manufacturers in Q3 is widely expected to remain positive at 20, as sentiment in the Japanese economy continues to exhibit positive momentum. Bolstering the optimism for future growth in the worldââ,¬â"¢s second largest economy was September Business Outlook Survey diffusion index for current conditions, which rebounded to a solidly expansionary 10.5 from 1.8 in the previous quarter. Furthermore, Annualized Capex revised to 11.6%, beating median forecast for 8.8%.  The continued growth highlights how the cyclical upturn in investment remains a key element in GDP growth, supported by ongoing profit growth. Tankan is expected to stay in positive territory in the near-term as survey data for September re-emphasizes the forward progress of the economy.

Previous: The Japanese Tankan Survey for Q2 improved for the second straight month as the manufacturing sector continued to recover on the back of increased consumer demand and spending. The Tankan also showed that major Japanese companies planned to increase capital expenditure by an average of 2.7% in the fiscal year as business investment accelerated and helped to stave off any lagging effects of the BOJââ,¬â"¢s rate hike earlier in the year. Other economic indicators also pointed to a continuing recovery as Japan's Core CPI held steady in the month while the jobless rate hit a seven-and-a-half year low of 4.1%. These factors combined with the steady rise in prices signaled an end to the decadeââ,¬â"¢s long deflation and should pave the way for increased tightening of monetary policy in early 2007.

Swiss SVME Purchasing Managers Index (SEP) (07:30 GMT; 03:30 EST)
Consensus:         66.0
Previous:              68.2

Outlook: Spending among Swiss purchasing managers is expected to follow the trend seen developing in export and domestic markets.  An expected drop in the SVME read to 66.0 in September comes initial on the back of trade figures.  Accounting for a generous portion of Swiss factoriesââ,¬â"¢ business, exports sank 1.7 percent in August, sending the balance to a five-month low SFr 577 million from SFr 1.37 billion in July.  Demand from European Union members, the biggest destination for Swiss goods destined to be sold outside its boards, is showing signs of cooling as jobless trends and impending tax hikes loom heavy. Domestic trends have also been off in the most recent indicators.  The UBS Consumer Spending gauge for August dropped for the second consecutive month while the retail sales report for July slowed from 4.8 percent to 2.1 percent growth.  If the manufacturing sector joins with the other necessary markets behind Swiss growth, the SNB may find it is time to halt rate hikes that could further suppress growth.

Previous: Manufacturing growth unexpectedly hit a record high in August, leading the central bank to step in with another rate hike to stifle the seemingly unbridled growth coming from the sector.  The sizable 3.1 point jump in the read to mark 68.2 came on the heels of first quarter growth hitting near six year highs.  Within the components of the headline read, all of the major factors leading into the survey were reporting extraordinary numbers.  Actual output levels grew for the fourth consecutive month, while backlogs of yet uncompleted orders grew to its highest point since April.  Even inflation was on the rise, allowing businesses to command higher prices for their goods and simultaneously stoking the possibility of another rate hike based on the merits of inflation pressure.  Another positive sign was the steady increase in the employment gauge which could keep the economy running on strong domestic demand.

Euro-Zone PMI Manufacturing (SEP) (08:00 GMT; 04:00 EST)
Consensus:         56.3
Previous:              56.5

Outlook: Euro-Zone PMI for the month of September is expected to edge slightly lower to 56.3 as increased ambiguity about the medium term growth outlook continues to plague manufacturers. The breakdown of previous figures indicate a deceleration in output and new orders growth, but levels remain very high which point to ongoing expansion indicative of a healthy economy. A cooling world economy, higher energy costs, fears of a tightening slowdown, and Germanyââ,¬â"¢s VAT hike next year all increase the bias that Septemberââ,¬â"¢s PMI will dip as they all represent medium-term factors that will likely cause uncertainty in the Euro-Zone market sectors.

Previous: August manufacturing PMI dropped to 56.5 from 57.4 in July as medium-term factors continue to build and lead to increasing uncertainty about growth prospects for the Euro-Zone. Business confidence, as marked by German IFO data, indicate a steady and very sharp decline in the outlook for the future and add to the already bitter sentiment resonating from the Euro-zone. However, despite a declining assessment of future periods, the output reading of 58.4 for August PMI is the 15th consecutive reading clearly above the 50 boom/bust level, which still signals positive growth potential going forward and should not dissuade the ECB from further tightening into 2007.

UK PMI Manufacturing (SEP) (08:30 GMT; 04:30 EST)
Consensus:         53.0       
Previous:              53.1       

Outlook: The UK PMI Manufacturing index looks to stay relatively unchanged, as economists expect that growth stayed flat following two consecutive months of declines. Regardless, the outlook for future growth remains relatively morose, as global economic expansion shows signs of slowing and the national currency remains strong. One of the few bright spots for outlook on industrial growth remains falling commodity prices, which have placed considerable burdens on industry-wide profit margins. Indeed, with Crude Oil prices now over 15 dollars off of August highs, purchasing managers may see production inch higher in September.

Previous: The UK PMI Manufacturing survey showed that production shrank more than previously forecast on record-high energy prices. While the broader index more than expected to 53.1, the new orders reading fell for the first time since January to 52.4 on the month. This coincided with a drop in export orders, which saw itself below the neutral 50 mark at 48.3. Given these poor results, some say that manufacturing growth has topped out after contributing to the highest quarterly growth since 2004. Thus market analysts will watch the coming PMI figure for any indication on whether broader industry can recover from recent weakness, with downside risks remaining for the British Pound on a poor result

US ISM Manufacturing (SEP) (14:00 GMT; 10:00 EST)
                       (ISM)                 (Prices Paid)
Consensus:       53.7                      68.0
Previous:           54.4                      73.0

Outlook: ISM manufacturing is expected to slow in September despite oil prices definitively below highs in the month of August. The bulk of analysts predict that the recently poor Philadelphia Fed figure will lead the broader index lower, as broader US growth continues past its peak and signs of slowdown abound. Markets will pay particularly close attention to the employment component of the report, with the reading typically highly correlated with subsequent Non Farm Payroll changes. Likewise bearish for the US dollar, the Prices Paid component looks to edge lower, as demand for manufactured goods slows. Needless to say, continued declines in industrial production bodes poorly for broader outlook on the worldââ,¬â"¢s largest economy. Analysts will look to see if ISM Manufacturing numbers can sustain weakness seen in specific regions of the economy, while traders will likewise monitor other key US data releases in the coming week.

Previous: US manufacturing eased in the month of August, consistent with broader signs of slower growth in the domestic economy. The ISM Manufacturing survey reading fell from 54.7 to 54.5 on the month, representing little change, but a continued downtrend worsens outlook for US industry. Likewise, the prices paid component moved lower, from 78.5 to 73 in August. Slower housing growth has hurt disposable income levels for consumers, which in turn limits inflation on slower spending. It is important to note, however, that recently lower gasoline prices have boosted consumer confidence and may bring a slight rebound in spending. We look to the upcoming ISM Manufacturing and Prices Paid reports for early signs of such a change.

Richard Lee is a Currency Strategist at FXCM.