In this week’s edition of Economy Week Ahead, we take a look at the U.S. economy and what to expect for next week when President Trump delivers his first address on economic growth, inflation in focus. MyEcon 101 will help you prepare for that speech by explaining how GDP is calculated and why it matters.,
The “u.s. gdp growth” is a measure of economic growth in the United States. It is calculated by taking the annual change in real gross domestic product and dividing it by the average number of hours worked in that year. The GDP is also affected by inflation, which is measured as the percentage increase over a given period.
After February’s downturn, the March durable goods report is likely to show a recovery in new orders.
KAMIL KRZACZYNSKI/REUTERS/KAMIL KRZACZYNSKI/REUTERS/KAMIL KRZACZY
3:00 p.m., April 24, 2022 ET
The first-quarter GDP estimates from the United States and the eurozone will indicate how both economies fared during a time highlighted by steep climbs and fast dips in Covid-19 cases, rising inflation, and Russia’s invasion on Ukraine.’
TUESDAY
During the Covid-19 rebound, American companies were stuck between increased demand and strained supply networks. After a dismal February, March figures on durable goods—products meant to last at least three years—are likely to show a comeback in new orders.
THURSDAY
The Bank of Japan is anticipated to maintain its ultralow interest rate goals. Japan’s economy is still shrinking, and “cost-push” inflation is wreaking havoc on corporate earnings as Japanese businesses fight to pass on rising costs to consumers.
In the first months of 2022, a crucial indicator of US economic growth is predicted to have slowed dramatically. The first quarter’s gross domestic product is expected to expand at a rate of less than 1%, down from 6.9% quarterly growth at the end of last year. The headline number will most likely reflect rising prices, an increasing trade deficit, and slower inventory growth, hiding relative strength in consumer spending, corporate investment, and real estate.
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Economics in Real Time
Weekdays, WSJ’s Jeffrey Sparshott curates the latest economic news, commentary, and statistics.
FRIDAY
Following Russia’s invasion of Ukraine, figures from the European Union’s statistics office are likely to show a worsening prognosis for the eurozone economy, with GDP slowing again in the first quarter and the annual rate of inflation continuing high in April. Inflation is expected to reach a new high of 7.5 percent, up from 7.4 percent in March, according to economists.
Consumer spending in the United States dropped dramatically in February, as increasing inflation offset wage increases. Consumer spending increased in March, according to economists, while Covid-19 continued to decline and consumers spent more on services like as air travel and eating out. While underlying pricing pressures are reducing, the Federal Reserve’s preferred gauge of inflation, which will be released with consumer spending data, might indicate underlying price pressures are still around a four-decade high.
The employment-cost index in the United States—a measure of pay and benefits paid by employers—is likely to show another run of robust wage rises in the first quarter, presenting the Fed with additional evidence that a tight labor market is contributing to inflation’s 40-year high.
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‘Economic Calendar’ appeared in the print version of the April 25, 2022, issue.
The “economic news” is all about the economy. This week’s focus is on economic growth and inflation.
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