Economic week ahead: US existing home sales, German business confidence

Shoppers in San Francisco on June 10; Economists expect figures released this week to show consumer spending increased in May.


Photo:

David Paul Morris / Bloomberg News

Tuesday

Sales of existing homes in the United States fell in April from the previous month as record prices deterred potential buyers. But April sales were still 51.7% higher than the same month a year earlier. Economists expect another drop in May.

Thursday

The main measure of business confidence in Germany, compiled by the research institute Ifo, is expected to see renewed optimism in June. This would support expectations that Europe’s largest economy rebounded in the second quarter from a contraction in the first quarter and is expected to grow even faster in the three months to September.

US orders of long-lived manufactures fell in April for the first time in a year, in part due to delays in the auto industry caused by the global shortage of computer chips. Economists expect a recovery in May.

Friday

Consumer spending in the United States rose 0.5% in April from the previous month, as newly vaccinated Americans ventured out of their homes. Spending on services, which accounts for the bulk of all consumer purchases, rose 1.1%, offsetting a 0.6% decline in spending on goods. Economists expect another hike in May.

Gfk’s measure of German consumer confidence is expected to show consumers regained confidence in June, boosted by rapid progress in vaccinations and the easing of restrictions on many activities in the country and travel abroad.

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Appeared in the print edition of June 21, 2021 under the name “Economic Calendar”.

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