This week is all about consumers as we kick things off on Tuesday with as consumer prices expected to have risen 0.3% in April, which is expected to raise the annual index to 2.5%, this would be the first inThis week’s focus is squarely on the consumer, with a trio of key reports set to shape the outlook. It starts Tuesday with the Consumer Price Index, where prices are expected to have risen 0.3% in April, pushing the annual rate to 2.5%. That would mark the first year-over-year increase since December, though it would still be the second-lowest reading in the past seven months. Core inflation is forecast to rise a more modest 0.2%, keeping the annual rate steady at 2.8%. On Thursday, the Producer Price Index is projected to climb 0.2%—the largest monthly gain since January—lifting the annual rate to 3.1%. Also due Thursday, retail sales are expected to show a slight 0.1% decline in April, suggesting consumer demand may be softening.
Notable:
Monday: The US government’s monthly budget deficit is expected to rise to $235B
Tuesday: Total household debt is expected for Q1
Thursday: Homebuilder confidence is expected to hold at 40
Friday: Building permits are expected to fall 1.2% and housing starts are expected to fall 1.1% in April
