Economy Week Ahead: Housing Starts, Existing Home Sales
16 Juni 2019 - 9:29PM
Dow Jones News
By WSJ Staff
In the week ahead, the U.S. will see fresh data on housing
starts and existing-home sales, and the Federal Reserve will
release its policy statement. Overseas, the Bank of England issues
a policy decision.
Tuesday: The U.S. Commerce Department releases housing-starts
data for May. The gauge of home building across the U.S. increased
in April, driven by an uptick in single-family construction.
Permits for single-family homes declined though, suggesting that
the gain in starts might have been temporary. A host of factors,
including a lack of available land and rising input costs have
driven up prices, causing a slowdown in the broader U.S. housing
market. Economists surveyed by The Wall Street Journal expect
housing starts increased by 0.4% in May to a seasonally adjusted
annual rate of 1.24 million.
Wednesday: Fed officials signaled earlier this month they were
ready to discuss rate cuts but were unlikely to pull the trigger at
their June 18-19 meeting. Fed Chairman Jerome Powell has said the
Fed will "act as appropriate" to extend the expansion amid greater
uncertainty from unsettled trade negotiations. One question is how
far officials might signal any bias toward easier policy in their
postmeeting statement.
Thursday: Faced with continued uncertainty about when and in
what way the U.K. will leave the European Union, the Bank of
England is expected to leave its key interest rate unchanged at
0.75%. However, policy makers are expected to remind skeptical
investors that they intend to raise the key interest rate over the
coming years. Investors expect the next move to be a rate cut,
partly because they expect global economic growth to weaken, and
partly because they fear the damage a disruptive Brexit could
inflict on the economy. Later in the day, Gov. Mark Carney will
have an opportunity to reinforce the BOE's message in his annual
Mansion House speech, which sees him address investors directly at
the Lord Mayor of London's official residence.
Friday: The National Association of Realtors releases May
existing-home sales data for the U.S. Sales of previously owned
U.S. homes declined for the second month in a row in April,
suggesting continued weakness in the housing market. Economists
surveyed by The Wall Street Journal forecast existing-home sales
rose by 0.6% in May to a seasonally adjusted annual rate of 5.22
million.
(END) Dow Jones Newswires
June 16, 2019 15:14 ET (19:14 GMT)
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