This Week: New home sales, Gap earns, consumer spending
A look at some of the key business events and economic indicators upcoming this week:
HOUSING MARKET BELLWETHER
The Commerce Department releases its July tally of new U.S. home sales Tuesday.
Economists project that sales slowed again last month to a seasonally adjusted annual rate of about 578,000 homes. That would follow a sales rate of 590,000 homes in June. The real estate market has cooled after a strong start to the year as surging inflation, rising home prices and a sharp run-up in mortgage rates have made homeownership less affordable for many would-be buyers.
New home sales, seasonally adjusted annual rate, by month:
July (est.) 578,000
Wall Street expects to see more red when Gap serves up its latest quarterly report card Thursday.
Analysts predict the fashion chain slid to a loss in its fiscal second quarter and that its revenue declined versus the same quarter last year. That would match the company’s first-quarter snapshot. Gap, which also owns the Old Navy, Banana Republic and Athleta chains, has been struggling with slumping sales and supply chain challenges. CEO Sonia Syngal stepped down last month after two years on the job.
The Commerce Department delivers its July snapshot of consumer spending Friday.
The personal consumption expenditure price index rose 1.1% in June from a month earlier. The report is closely monitored by the Federal Reserve as a barometer of inflation, which is at the highest level in decades, eroding consumers’ purchasing power. The Fed has been raising interest rates this year in a bid to slow the economy enough to tame inflation.
Consumer spending, monthly percent change, seasonally adjusted: