July 2, 2022
  • July 2, 2022

Upcoming Economic Week: Factories, GDP, Central Banks

By on April 25, 2021 0

Until a February setback, durable goods orders had risen for nine consecutive months amid strong consumer demand and rising business investment; March’s figure, expected on Monday, is expected to show a rebound.


Photo:

Steven Senne / Associated press

This week brings a full list of economic data and central bank meetings that are expected to show strong growth in the United States but patchy recoveries elsewhere in the world.

Monday

US durable goods orders are expected to rebound in March after bad weather disrupted supply chains a month earlier. Until the February setback, orders for durable manufactures had risen for nine consecutive months amid strong demand for consumer goods and rising business investment.

Tuesday

The Bank of Japan is expected to keep monetary policy on hold after a two-day meeting, after fine-tuning its easing program last month. The bank is also expected to publish a report on the outlook for the economy and prices and present its forecast for the year ending March 2024 for the first time.

Wednesday

The Federal Reserve is expected to keep interest rates and bond purchases stable after a two-day meeting. In his most recent comments, President Jerome Powell said he expects output and employment growth to accelerate in the coming months, but also recalled that the Fed plans to wait. that the economic recovery is complete before raising rates.

Thursday

U.S. economic growth is expected to accelerate in the first quarter of 2021, as businesses and households continue to exit a recession triggered by a pandemic. The first official reading of gross domestic product for the year is likely to benefit from big gains in consumer spending – aided by stimulus checks, stronger recruitment and vaccination campaigns – as well as increased business investment and investment. a solid real estate market.

Friday

China’s official survey of factory purchasing managers is expected to decline slightly in April after a three-month high of 51.9 in March, in line with expectations of a slight deceleration in activity in the second quarter of the year. A semiconductor shortage last month also slowed the manufacturing of home appliances, smartphones and computers.

The first official estimate of first-quarter economic output in the eurozone is expected to show a recession, with gross domestic product falling 0.8% after falling 0.7% in the last three months of 2020. Much of this reflects continued restrictions on service activity in response to high infection rates, but a recent uptick in vaccinations has persuaded many economists that growth will return in the current quarter.

Consumer spending in the United States is expected to rebound in March after cold weather and snowstorms shut down businesses and kept families indoors a month earlier. Separate data already suggests stimulus funds, Covid-19 vaccinations and business reopenings have caused a spring increase in household spending, a sharp drop in layoffs and a rebound in factory output.

Copyright © 2020 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8