Economy Week Ahead: Housing, Consumer Spending and Jobless Claims

Home sales, like this one in Ballston Lake, N.Y., are expected to step back in... — Home sales, like this one in Ballston Lake, N.Y., are expected to step back in November as limited supplies and higher prices start to bite.

Photo: Angus Mordant/Bloomberg News

By WSJ staff

Dec. 20, 2020 3:00 pm ET

The holiday-shortened week offers an array of data likely to confirm the U.S. economic recovery is slowing.

MONDAY

A monthly survey of eurozone households is expected to record a weakening of sentiment in the early weeks of December, as worries about rising coronavirus infections and the prospect of a lengthening period of restrictions outweigh the boost to optimism from the availability of effective vaccines.

TUESDAY

U.S. existing-home sales rose to a 14-year high in October, spurred on by low mortgage rates and a quest for more space. Economists are forecasting a step back in November as limited supplies and higher prices start to bite. Even so, the outlook for the market appears robust amid strong demand for single-family homes in suburbs and less expensive cities.

WEDNESDAY

U.S. jobless claims have been trending in the wrong direction this month, a sign of rising layoffs heading into the winter. Economists expect applications for unemployment benefits to remain elevated in the week ending Dec. 19, unwelcome evidence the labor-market recovery is stalling.

U.S. consumer spending is expected to fall for the first time since April amid a resurgence of Covid-19 cases and fading fiscal support for households and businesses. Consumer spending is the main driver of economic growth, and a setback in November would suggest the country is heading for a rough patch before government aid arrives and coronavirus vaccines are widely distributed.

U.S. durable-goods orders are expected to rise for the seventh straight month in November, highlighting the manufacturing sector’s relatively strong rebound from shutdowns and supply-chain disruptions during the spring.

U.S. new-home sales are expected to fall slightly in November as builders struggle to keep up with demand. As with the much larger market for existing homes, the outlook for newly built single-family housing remains fairly bright and builder optimism historically high.