This week (May 28 – June 1) will be a short week since U.S. markets will be closed for Memorial Day on Monday. The week’s major data will be May’s nonfarm payrolls data on Friday. Before it, on Thursday, markets will watch April’s personal income and outlays (PCE) data. Also, on Wednesday, investor will follow ADP employment data to gain insight for Friday’s nonfarm payrolls data.
In addition th these economic data, markets will watch the news about trade negotitations between U.S. and China and the developments related to possible meeting between Trump and Korean leader Kim Yong Un.
Let’s look at top 3 U.S. economic data in details.
ADP Employment Data
The data will be released for May at 8:15AM ET on Wednesday. The consensus is an increase of 186.000. April data was an increase of 204.000.
ADP employment data can help improve Friday’s nonfarm payrolls forecast by providing information in advance of the employment report.
The data will be released for April at at 8:30AM ET on Thursday. The consensus forecast for PCE Price Index and core PCE Price Index are 0.2% and 0.1%, respectively. March data was 0.0% and 0.2%, respectivley.
On annualized basis, while PCE Price Index is anticipated to increase by 2.0%, core PCE Price Index is expected to increase by 1.8%.
Federal Reserve considers PCE data during the interest rate decisions. Also, personal spending affects the quarterly consumption expenditures in GDP data.
Nonfarm Payrolls Data & Unemployment Rate
The data will be released for May at 8:30AM ET on Friday by the U.S. Labor Department. The consensus for nonfarm payrolls and unemployment rate are 185.000 and 3.9%, respectively.
For April, nonfarm payrolls data was announced as 164.000, and unemployment rate was released as 3.9%. For May, nonfarm payrolls data is expected to show an increase compared previous month. Also, there is no change expectation for unemployment rate.
Nonfarm payrolls data is one of the most valuable data for investors to see the opportunities for their portfolios and for the markets. In addition, nonfarm payrolls data show significant indicators for the aggregate economic activity in the U.S. because it involves all essential sectors in the economy.
Wish you a very lucrative week!!!