NEW YORK (CNNMoney) — The economy and jobs will be front and center this week — whether investors like it or not.
The agenda is heavy on economic reports and culminates with the release on Friday of the governments monthly jobs report.
CNNMoneys survey of economists forecasts that the US economy created 178,000 jobs in May, down from 244,000 jobs a month earlier. The unemployment rate is expected to tick down to 8.9 percent from 9 percent.
While always closely watched, this report will be especially critical.
Stocks are on pace to have their worst month in a year after several pieces of economic data came up short of expectations.
Weekly claims on jobless benefits, a real-time indicator of the labor market, have remained stubbornly above 400,000 for seven weeks. Meanwhile other measures of the health of the economy, such as pending home sales and gross domestic product, have also been disappointing.
It looks like the foot is coming off the economic accelerator, said Fred Dickson, chief investment strategist with DA Davidson amp; Co.
Several market observers said they expect that stocks will continue to decline heading into the summer, particularly as investors prepare for the end of the Federal Reserves quantitative easing program in June.
Other closely-watched data out this week will be the Institute for Supply Managements manufacturing and service sector reports and the Commerce Departments factory orders report.
US stock and bond markets are closed on Monday in observance of Memorial Day.
Tuesday: The Chicago Purchasing Managers index will be released at 9:45 am ET, followed by the Conference Boards consumer sentiment data at 10 am
Economists surveyed by Briefing.com expect that the Chicago PMI index fell to a reading of 62.5 from Aprils 67.6, while consumer confidence rose to 66.3 from 65.4.
Also out on Tuesday is the Samp;P Case-Shiller home prices report, which is expected to show that home prices fell 3.4 percent in March.
Wednesday: The first of this weeks jobs-related economic reports will be released on Wednesday: ADP private-sector employment at 8:15 am and Challenger job cuts at 7:30 am
Both sets of data are typically used to forecast the governments monthly jobs data, which is out on Friday. For the ADP report, economists expect that private employers created 170,000 jobs in May.
At 10 am, the Institute for Supply Management will release its May manufacturing index and the Commerce Department will issue its April construction spending report.
The ISM Index is expected to slip to 57.6 from Aprils reading of 60.4, while construction spending is expected to decrease 0.5 percent.
The major auto manufacturers also release their May sales figures on Wednesday, starting at around 11 am
Thursday: The Labor Department will release the initial jobless claims report at 8:30 am, as well as first quarter productivity figures.
Weekly jobless claims are expected to fall to 413,000, while first-quarter productivity figures will remain unchanged at 1.6 percent growth.
Also out on Thursday is the Commerce Departments April factory orders report, which is expected to fall 0.9 percnet.
Friday: All eyes on Friday will be on the May jobs report, out at 8:30 am
The Institute for Supply Management will put out its May services index at 10 am Economists are looking for the ISM services index to edge up to 53.3 from Aprils 52.8.