Economic week ahead: factories, services, jobs
Friday’s US jobs report highlights this week’s economic data.
China’s official manufacturing index is expected to stabilize at 51.1 in May, according to median forecasts from economists polled by the Wall Street Journal. Official surveys of buyers at factories in China have passed 50, dividing the expansion and contraction of business since February 2020, amid strong demand abroad. But in recent months, global semiconductor shortages, international logistics congestion and rising shipping costs have put pressure on manufacturers’ businesses.
Eurozone consumer prices rose at the fastest pace in two years in April, but the 1.6% increase was slower than in the United States, where inflation fears are mounting. The European Central Bank expects inflation to exceed its 2% target, albeit temporarily, as demand recovers later this year and the regional economy recovers more fully from the novel coronavirus.
According to a survey conducted by the Institute for Supply Management among purchasing staff at US factories, it is highly likely that activities in May have grown steadily. After a pandemic outage, production quickly resumed, but manufacturers now face consumers and consumers amid shortages of materials, rising commodity prices, bottlenecks in shipments and difficulties in replenishing vacant posts. I find it difficult to keep up with business demand.
The US employment statistics in April were disappointing and job growth was well below expectations. Economists predict that jobs will pick up in May as more people are vaccinated and companies offer higher wages and other incentives to attract workers. But even though employment increases significantly over the next month, employment in the United States has fallen by millions from before the pandemic, emphasizing a patchy and incomplete recovery. ..
Federal Reserve Chairman Jerome Powell will meet with the Central Bank on climate change at a global conference. Central banks around the world are actively engaging in climate-related policies, but the Fed is cautious in partisan debates and concerns about expanding its mission beyond jobs and inflation. I go.
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