Economy Week Ahead: U.S. GDP, Household Spending in Focus

The Bank of Canada announces its latest monetary-policy decision, after it delivered a half-percentage-point increase for its main interest rate at its previous meeting. The central bank has signaled that it is at or near the end of its tightening campaign with Canada’s economy showing signs of slowing growth and easing inflation.

Thursday

The U.S. Commerce Department releases fourth-quarter gross domestic product—a broad measure of the goods and services produced in an economy. The U.S. economy grew at a 3.2% annual rate in the third quarter after contracting in the first half of the year, according to the department’s most recent revision. 

The Commerce Department also releases December figures on orders of long-lasting goods. Overall new orders for durable goods fell sharply in November from the prior month. 

The U.S. Labor Department reports the number of worker filings for unemployment benefits in the week ended Jan. 21. Initial jobless claims, a proxy for layoffs, declined in the week ended Jan. 14 to the lowest level since September, suggesting the labor market remained tight.

Friday

The Commerce Department releases figures on U.S. household spending and income in December. Consumer spending rose 0.1% in November from the prior month, a pullback from the robust 0.9% gain in October. The department also releases its personal-consumption expenditures price index, a gauge of inflation closely watched by the Fed. The PCE-price index rose 5.5% in November from a year earlier. 

The University of Michigan publishes its final reading of consumer sentiment for January. A reading earlier this month showed that sentiment reached its highest level in nine months due to easing concerns over the possibility of a recession and inflation. 

The National Association of Realtors reports December pending sales of U.S. homes based on contract signings. Pending home sales fell in November for the sixth consecutive month as the housing market buckled under high mortgage rates and weakened demand.

Write to Bryan Mena at [email protected]

The Bank of Canada announces its latest monetary-policy decision, after it delivered a half-percentage-point increase for its main interest rate at its previous meeting. The central bank has signaled that it is at or near the end of its tightening campaign with Canada’s economy showing signs of slowing growth and easing inflation.

Thursday

The U.S. Commerce Department releases fourth-quarter gross domestic product—a broad measure of the goods and services produced in an economy. The U.S. economy grew at a 3.2% annual rate in the third quarter after contracting in the first half of the year, according to the department’s most recent revision. 

The Commerce Department also releases December figures on orders of long-lasting goods. Overall new orders for durable goods fell sharply in November from the prior month. 

The U.S. Labor Department reports the number of worker filings for unemployment benefits in the week ended Jan. 21. Initial jobless claims, a proxy for layoffs, declined in the week ended Jan. 14 to the lowest level since September, suggesting the labor market remained tight.

Friday

The Commerce Department releases figures on U.S. household spending and income in December. Consumer spending rose 0.1% in November from the prior month, a pullback from the robust 0.9% gain in October. The department also releases its personal-consumption expenditures price index, a gauge of inflation closely watched by the Fed. The PCE-price index rose 5.5% in November from a year earlier. 

The University of Michigan publishes its final reading of consumer sentiment for January. A reading earlier this month showed that sentiment reached its highest level in nine months due to easing concerns over the possibility of a recession and inflation. 

The National Association of Realtors reports December pending sales of U.S. homes based on contract signings. Pending home sales fell in November for the sixth consecutive month as the housing market buckled under high mortgage rates and weakened demand.

Write to Bryan Mena at [email protected]