Last week was a largely positive one for the economy, as consumer confidence soared and home prices rose.
This week brings fresh data on jobs, the health of manufacturing, and consumer credit. The Federal Reserve also releases its monthly perspective on the state of the economy.
The Institute for Supply Management (ISM) releases its manufacturing index for May at 10 a.m. Analysts expect the index to inch up to 51 from 50.7. A value below 50 indicates contraction. Manufacturing has been growing at a sluggish pace so far this year.
Construction-spending data for April are also released at 10 a.m. The amount of spending is forecast to rise by nearly 1 percent, after a decrease of 1.7 percent in March.
Vehicles sales for May are released throughout the day.
New data on U.S. trade are released. The country’s international trade deficit is expected to widen slightly, from $38 billion in March to $41 billion in April.
At 8:30 a.m., payroll-processing firm Automatic Data Processing delivers its monthly report on the state of private-sector employment. The number of jobs added in May is projected to rise to 165,000, from April’s tally of 119,000.
At 10 a.m., the ISM releases its May non-manufacturing index, which describes the state of economic sectors such as communications, transportation and retail trade. The index is forecast to touch 53.5, up from 53.1 in April.
Factory orders for April come out at 10 a.m. They are expected to show an increase of 1.5 percent, after a drop of 4 percent in March. That decline, the most in seven months, was attributed to low demand from the aircraft industry.
The Federal Reserve releases its “beige book,” an anecdotal look at the health of the economy, at 2 p.m.
Weekly jobless claims are projected to drop to 345,000, from last week’s 354,000. The number of claims spiked last week, but the Memorial Day holiday prevented some states from obtaining a full count.
Chain store sales for May are released throughout the day.
The country’s latest jobs report is out at 8:30 a.m. Analysts predict that the unemployment rate in May stayed unchanged at 7.5 percent. In April, the nation added 165,000 jobs, mainly in the professional services and leisure and hospitality sectors.
Consumer credit for April is forecast to rise to $12.9 billion, from $7.9 billion in March. However, consumer spending in April unexpectedly decreased for the first time since May 2012, according to data released last week. Its effect on consumer credit remains to be seen.