Skip to Content
Global News Select

Economy Week Ahead: Inflation, Retail Sales, Industrial Production

By WSJ Staff 

Inflation is in focus with this week's round of economic data.

Tuesday

China's factory-gate prices are expected to surge in April. Economists polled by The Wall Street Journal are forecasting a rise in the producer-price index of 6.5% from a year earlier, in part because of a low base for comparison -- prices sank in April 2020 amid the coronavirus pandemic -- but also due to rapidly climbing costs for metals, oil and other materials. The country's consumer-price index is expected to climb for the second consecutive month.

Wednesday

The U.K. economy likely contracted in the first quarter after the government in December responded to rising Covid-19 cases with fresh restrictions on social and economic activity. But a strong vaccination campaign and steady reopening of the economy suggest the downturn was short lived. Economists expect growth to return in the second quarter and the Bank of England is forecasting U.K. gross domestic product will grow by 7.25% in 2021.

U.S. consumer prices in April are expected to post their largest annual increase in nearly a decade. Costs are rising for goods and services in high demand and short supply, but the figures will also be amplified by the comparison to prices from a year earlier -- when the economy was in a pandemic-induced tailspin. Federal Reserve officials are forecasting only temporary inflation pressures, though not all economists agree with the Fed's benign outlook.

Friday

U.S. consumer spending jumped in March as federal-stimulus checks sent household incomes soaring. Economists are forecasting more gains in April, albeit at a slower pace than the previous month. Retail sales -- a measure of purchases at stores, at restaurants and online -- will likely be helped along as Covid-19 related restrictions are relaxed, vaccination campaigns advance and the broader economy expands.

U.S. industrial production -- a measure of factory, mining and utility output -- is expected to advance in April as factories look to keep up with strong demand for autos, appliances and other goods. Supply-chain disruptions, rising raw-material costs, semiconductor shortages and transportation bottlenecks have been the biggest obstacles for manufacturers in recent months.

 

(END) Dow Jones Newswires

May 09, 2021 15:14 ET (19:14 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.