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

Germany’s leading measure of business confidence, compiled by the Ifo research institute, is expected to record another pickup in optimism in June. That would underpin expectations that Europe’s largest economy has rebounded in the second quarter from a first-quarter contraction and is set for even more rapid growth in the three months through September.

U.S. orders for long-last manufactured goods slipped in April for the first time in a year, in part due to auto-industry backlogs caused by the global computer-chip shortage. Economists expect a pickup in May.

Friday

U.S. consumer spending rose 0.5% in April from the prior month as newly vaccinated Americans ventured out of their homes. Spending on services, which account for the bulk of all consumer purchases, rose 1.1%, offsetting a 0.6% decline in goods spending. Economists expect another rise in May.

Gfk’s measure of German consumer confidence is expected to show that consumers gained further confidence in June, boosted by rapid progress in vaccinations and the relaxation of restrictions on many activities within the country, and travel abroad.