May 19, 2022

Economy Week Ahead: Imports, Jobless Claims, Inflation

A man moving boxes at a business in New York City, June 4.



Photo:

Spencer Platt/Getty Images

Inflation readings from China and the U.S. highlight this week’s round of economic data.

Monday

China’s imports are expected to surge in May due to rising commodity prices and the low base from a year earlier, according to 16 economists polled by The Wall Street Journal. The country’s imports are forecast to grow 53% from one year ago. Outbound shipments, a key engine of growth for China’s economy, are expected to rise 32.3%. The country’s trade surplus is expected to touch $47.9 billion compared with $42.9 billion in April.

Tuesday

The U.S. trade deficit hit a record in March as federal stimulus reinvigorated consumers and pushed demand for imports to a fresh high. Economists are forecasting a narrower trade gap in April, though the overall figure will likely remain elevated as the U.S. reopening gathers strength.

Wednesday

China’s factory-gate inflation is expected to hit more than a decade high in May, triggered by the rising commodity prices, according to a median forecast of 16 economists. The producer-price index is projected to climb 8.6% from a year earlier, the highest level since August 2008. Meanwhile, the consumer-price index is expected to have risen 1.5% annually in May compared with April’s 0.9% expansion.

Thursday

The European Central Bank releases a policy statement and staff forecasts. In March, the ECB pledged to accelerate purchases under a €1.85 trillion bond-buying program in an effort to hold down borrowing costs amid sluggish economic growth. Now, with Covid-19 vaccinations rising, pandemic restrictions easing, activity accelerating and inflation rising above the central bank’s target, some economists are looking for signs those purchases could soon be scaled back.

U.S. consumer prices rose in April by the most in any 12-month period since 2008, intensifying deliberations over proper levels of fiscal stimulus, monetary policy and whether surging inflation is temporary or the start of a potentially damaging price spiral. Economists expect another hefty gain for the consumer-price index in May, though a second elevated reading is unlikely to settle the debate over inflation’s medium-term trajectory.

U.S. jobless claims hit a fresh pandemic low at the end of May, adding to signs of a healing labor market. Economists are forecasting another decline in the week ending June 5 as employers hang onto workers while the economy continues to reopen.

Copyright ©2020 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Related Posts

Covid-19 Testing Could Be a Viable Long-Term Business Bet

June 6, 2021

June 6, 2021

With slow vaccination rates threatening the likelihood of herd immunity, companies and federal and state governments are pouring billions of...

Miners’ Efforts to Attract More Female Workers Fall Flat

June 10, 2021

June 10, 2021

A drive by mining companies to hire more women has stalled, leaving the industry as one of the world’s most...

G-7 Tax Plan: What We Know About the Global Corporate Tax Deal

June 8, 2021

June 8, 2021

Seven wealthy countries have announced a plan to impose a minimum levy on multinational corporations and rewrite the rules governing...

Jerome Powell’s Fate Is Critical to Biden Presidency

May 26, 2021

May 26, 2021

Few things matter more to the success of President Biden’s administration than employment and inflation, and few institutions influence those...

U.S., Taiwan to Launch Trade Talks

June 8, 2021

June 8, 2021

The Biden administration is launching trade and investment talks with Taiwan, advancing U.S. ties with Taipei and likely adding to...

Puerto Rico’s Power Distributor Suffered a Cyberattack Hours Before a Devastating Fire

June 11, 2021

June 11, 2021

Puerto Rico’s main power provider suffered a cyberattack shortly before a fire at a substation in San Juan Thursday caused...

U.S. Employers Added 559,000 Jobs in May

June 4, 2021

June 4, 2021

Employers added 559,000 jobs in May and the unemployment rate fell to 5.8%, in a pickup of the labor market’s...

General Mills Warns of Inflation, Readies for Shifting Consumer Behavior

June 30, 2021

June 30, 2021

General Mills Inc. is bracing for an uncertain year as consumers emerge from spending more time at home during the...

Epic Games Faces Apple in Final Day of Courtroom Battle Over Monopoly Claims

May 24, 2021

May 24, 2021

Lawyers for Apple Inc. AAPL 1.79% and Epic Games Inc. on Monday began making their final arguments to a judge...

The U.S. Prepares for a Blockbuster July Fourth

July 2, 2021

July 2, 2021

Mark Penzkover, a civil engineer near Milwaukee, jumped in his car the other day and like many others across the...

Deere Workers Reject Second Contract Offer, Extending Strike

November 3, 2021

November 3, 2021

Workers at Deere & Co. rejected a second contract offer, extending a strike against the farm equipment and construction machinery...

Lordstown Motors Executives Resign Amid Inaccurate Preorder Disclosures

June 14, 2021

June 14, 2021

Lordstown Motors Corp. RIDE -17.56% said its chief executive and top financial leader have resigned, decisions that come amid a...

Planes Grounded by Covid-19 Largely Avoid the Junkyard—for Now

June 4, 2021

June 4, 2021

SYDNEY—After the coronavirus pandemic grounded air travel, many of the thousands of aircraft that were parked at storage facilities around...

Goat Group, Parent of Sneaker Marketplace, Valued at $3.7 Billion in Latest Funding Round

June 24, 2021

June 24, 2021

Goat Group, parent company of an online marketplace for sneakerheads, said it has raised $195 million through private investors to...

Biden’s Capital-Gains Tax Proposal Puts Estate Planners to Work

June 8, 2021

June 8, 2021

Estate planners for the wealthiest Americans are combing through the Biden administration’s proposed tax increases, hunting for ways to sidestep...