The U.S. economy may have expanded at a 4.4 percent annual pace in the first quarter, the same as the
Commerce Department initially estimated last month, according to
a survey of economists in advance of a report today.
The projected rise in gross domestic product, the value of
all goods and services, is based on the median forecast of 62
economists surveyed by Bloomberg News and compares with a 4.1
percent fourth-quarter rate. The GDP price deflator, a measure of
prices tied to the report, is forecast to rise at a 2.6 percent
annual pace, also the same as estimated last month. The
department issues the report at 8:30 a.m. in Washington.
Companies have been boosting production and replenishing
inventories amid rising demand for goods and services. Businesses
including recreational-vehicle maker Winnebago Industries Inc.
and hand-held computer company PalmOne Inc. forecast stronger
sales. An improving labor market, more corporate spending and
additions to inventories will help fuel growth this year,
economists said.
“With job growth supporting consumers and hefty business
investment picking up the slack, strong GDP growth prospects
remain intact,” said Zubair Ladak, a financial markets economist
at Scotia Capital Inc. in Toronto.
The National Association of Realtors may report home re-
sales fell in May from a near-record pace the month before. The
industry group may report existing homes sold at a 6.5 million
annual rate in May, down from 6.64 million in April, based on the
median of forecasts. Still, the projected pace would be the third-
best ever. The report is set for 10 a.m. in Washington.
The University of Michigan may reports its final June
consumer sentiment index registered 95, below the preliminary
reading of 95.2 but higher than the final May reading of 90.2,
according to the median forecast. That report is scheduled for
9:50 a.m. Washington time.
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