Economy Week Ahead: U.S. Existing-Home Sales, German Business Confidence

Buyer in San Francisco June 10; Economists expect numbers to be released this week showing consumer spending rose in May.


Photo:

David Paul Morris / Bloomberg News

Tuesday

Existing home sales in the United States fell in April from the previous month as record high prices scared off potential buyers. In April, however, sales were 51.7% higher than in the same month last year. Economists expect a further decline in May.

Thursday

Germany’s leading measure of the business climate, which was compiled by the Ifo Research Institute, is expected to show a further rise in optimism in June. This would support expectations that Europe’s largest economy has recovered in the second quarter from a decline in the first quarter and will grow even faster in the three months to September.

US Durable industrial goods orders fell in April for the first time in a year, partly due to backlogs in the auto industry caused by the global scarcity of computer chips. Economists expect an increase in May.

Friday

US consumer spending rose by 0.5% in April from the previous month when newly vaccinated Americans ventured out of their homes. Spending on services, which make up the bulk of all consumer purchases, increased 1.1%, offsetting a 0.6% decrease in goods spending. Economists expect a further increase in May.

The Gfk measurement of German consumer confidence is intended to show that consumers continued to gain confidence in June, thanks to rapid progress in vaccinations and the easing of many domestic activities and trips abroad.

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