The PMIs for Germany are also scheduled for release on Thursday. Economists are predicting that the manufacturing PMI will decline slightly to 52.0 in July from the previous month's 52.6. The services PMI is also forecast to deteriorate, going to 51.5 from June's 52.1.

Thirty minutes after the release of the PMIs, Germany's Ifo Institute for Economic Research will release its business sentiment indicator for July. With declines likely in the expectations and current assessment components of the Ifo, the headline indicator is forecast to fall to 100.1 in July from June's 101.3.

Matthias Rubisch from Commerzbank wrote the following: "While the Ifo is admittedly still at a high level and reflects the relatively sound position of the German economy, the bright view of the current situation is overshadowing the cyclical downturn. Corporate expectations, for example, which generally have a certain prophetic quality, have fallen below their historical average. They are likely to have fallen even lower, so we expect the Ifo business climate to have retreated to 100.5 points."

Following the release of the individual euro zone state PMIs, the aggregate PMI for the euro zone will be published. Declines are expected in both indexes, with the services PMI tumbling to 48.8 from June's 49.1 reading, while the manufacturing PMI is likely to fall to 48.7 from 49.2.

Economists from Citigroup wrote the following: "The ongoing tightening in domestic lending conditions, high oil prices and the lagged impact of the earlier EUR appreciation probably will lead to a sixth consecutive decline in the manufacturing PMI. After two months of substantial falls in service sector sentiment we expect a further [probably modest decline] in July. As a consequence the composite PMI made up of the activity components in the manufacturing and services PMI] is likely to reach the lowest reading since June 2003."

Economists from BNP Paribas wrote the following regarding euro zone PMI: "The July flash estimate, to be released on Thursday, 24 July, is expected to show another decline in both the manufacturing and services sectors, in line with Q2 slowdown which should also be visible in the GDP figures to be reported in mid August."

In the UK, June retail sales will be released, which economists forecast to fall 2.6% following a 3.5% rise in May. The annualized rate is expected to rise 4.4% for June following a previous rise of 8.1%.

All times in EDT

2:45 FR Business Confidence Indicator July Exp: +100 Prior: +102

2:45 FR Production Outlook Indicator July Exp: -17 Prior: -15

2:45 FR Own-Company Production Outlook July Exp: +4 Prior:+ 7

3:00 FR PMI Manufacturing July Preliminary Exp: +49.0 Prior: +49.2

3:00 FR PMI Services July Preliminary Exp: +49.7 Prior: +50.1

3:30 DE PMI Manufacturing July Advance Exp: +52 Prior: +52.6

3:30 DE PMI Services July Advance Exp: +51.5 Prior: +52.1

3:30 IT Business Confidence July Exp: +86.5 Prior: +87.1

4:00 DE IFO - Business Climate July Exp: +100.1 Prior: +101.3

4:00 DE IFO - Current Assessment July Exp: +106.5 Prior:+ 108.3

4:00 DE IFO - Expectations July Exp: +93.2 Prior:+94.7

4:00 EU ECB Euro-Zone Current Account (SA) May Prior: -0.3B

4:00 EU PMI Manufacturing July Advance Exp: 48.7 Prior: 49.2

4:00 EU Euro-Zone Current Account (NSA) May Exp: -6.0B Prior: -9.2B

4:00 EU PMI Services July Advance Exp: +48.8 Prior:+ 49.1

4:00 EU PMI Composite July Advance Exp: +49 Prior:+ 49.3

4:30 GB Retail Sales (M/M) June Exp: -2.6% Prior: +3.5%

4:30 GB Retail Sales (Y/Y) June Exp: +4.4% Prior: +8.1%

July 19-25 DE Import Price Index (M/M) June Exp: +1.0% Prior: +2.4%

July 19 - 25 DE Import Price Index (Y/Y) June Exp: +8.4% Prior: +7.9%

By Steve Stecyk, This email address is being protected from spam bots, you need Javascript enabled to view it , edited by Cristina Markham, This email address is being protected from spam bots, you need Javascript enabled to view it

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