UPDATE: ECB Urges Adoption of Long-Term View in Accounting Practices

By Kathleen Madigan 
 

Economists expect little joy to be found in this week's flurry of reports. The weak readings will give Federal Reserve policy makers much to consider when they meet next week, on June 19 and 20.

Wednesday's retail sales report is expect to show shoppers pulled back in May. The median forecast is that total sales dropped 0.3% in May. Excluding autos, store sales likely slipped 0.1%, in part because of falling prices at gasoline stations.

Forecasters also think the industrial sector downshifted in May, though that followed a large 1.1% jump in April. Industrial production, out Friday, is expected to show a small 0.1% gain last month, and capacity use is expected to remain at 79.2%.

Two early looks at June are also on tap this week. The Empire State survey from the Federal Reserve Bank of New York, scheduled for Friday, is expected to show weakness in June, after a strong showing in May. The business conditions index is projected to slow to 10.7 this month from 17.09 in May.
The preliminary June reading of consumer sentiment, also out Friday, is forecast to drop to 77.0 from the end-May reading of 79.3.

Economists also think falling oil prices brought down top-line inflation in May.
The producer price index, scheduled for Wednesday, is projected to have fallen 0.8% in May, while the core index, which excludes food and energy, is expected to have increased 0.2%.
The median forecast for the consumer price index, due Thursday, is for a 0.3% drop in May, with the core index up 0.2%.

 DATE     TIME  RELEASE              PERIOD  CONSENSUS  PREVIOUS 
          (ET) 
Tuesday   0730  NFIB Small Business    May      94.5       94.5 
          0830  Import Prices          May      -1.1%      -0.5% 
          1400  Federal Budget         May      -$125.0B   -$57.6B* 
Wednesday 0830  Producer Prices        May      -0.8%      -0.2% 
                 -excl food & energy   May      +0.2%      +0.2% 
          0830  Retail Sales           May      -0.3%      +0.1% 
                 -excl autos           May      -0.1%      +0.1% 
          1000  Business Inventories   Apr      +0.3%      +0.3% 
Thursday  0830  Jobless Claims        Jun 9     375K       377K 
          0830  Consumer Prices        May      -0.3%      Unch 
                 -excl food & energy   May      +0.2%      +0.2% 
          0830  Current Acct Balance   1Q       -$134.0B   -$124.1B 
Friday    0830  NY Fed Empire St Svy   Jun      10.7       17.09 
          0915  Industrial Production  May      +0.1%      +1.1% 
          0915  Capacity Utilization   May      79.2%      79.2% 
          0955  Reuters/UMich Consumer 
                  Sentiment (prelim)   Jun      77.0       79.3** 
 
 *May 2011 reading 
 **end-May reading