Econ Edge: The Economic Week

THIS WEEK'S ECONOMIC NEWS CALENDAR

Monday, April 25

[expected: 6.80 million/prior: 6.79 million]

The National Association of Realtors reported a surprisingly strong March for sales of pre-owned homes. The report shows that existing homes sold at an annual rate of 6.89M units during March; up from February's pace of 6.82 million. Most analysts expected a slowdown in the sales pace to 6.79 million units.

The price of gasoline was effectively flat last week, dropping just one-tenth of a cent in the government's weekly survey. The price of a gallon of regular unleaded gas averaged $2.24 according to the Energy Information Administration. Even with prices moderating or dropping across the nation, the price of filling up the car is has risen significantly compared to last year. Retail gas prices are up 23 percent from a year ago.

Tuesday, April 26

[expected: 1.200 million/prior: 1.226 million]

Sales of new homes shot up 12.2 percent in March to a record high as the nation's housing market continued to soar despite rising mortgage rates, the Commerce Department said. New single-family homes were sold at a seasonally adjusted annual rate of 1.43 million units in March, confounding the consensus forecast of a small decline in sales in March, a month when mortgage rates had been inching higher.

Wednesday, April 27

[expected: +0.3 percent/prior: +0.5 percent]

New orders for long-lasting U.S.-made durable goods fell by 2.8 percent in March, the biggest tumble since September 2002. Excluding the volatile transportation category, orders for durable goods -- pricey manufactured items meant to last three years or more -- sank 1.0 percent, the Commerce Department said. This is the third straight month of declines in orders. Economists had expected orders to grow by 0.3 percent during the month.

Thursday, April 28

[expected: 3.5 percent/prior: 3.8 percent]

The broadest measure of the country's economic health, gross domestic product, rose at an annual rate of 3.1 percent in the January-to-March period, down from a 3.8 percent pace in the prior quarter, the Commerce Department reported Thursday. The first-quarter GDP reading was the most sluggish since the first quarter of 2003. GDP measures the value of all goods and services produced within the United States.

Friday, April 29

[Income: expected: +0.4 percent/prior: +0.3 percent]

[Spending: expected: +0.4 percent/prior: +0.5 percent]

Americans' incomes rose by 0.5 percent in March, the best showing in three months, and they used the extra money to boost consumer spending by 0.6 percent, the government reported Friday. The Commerce Department said that the March income gain followed a 0.4 percent rise in February and was the best since a 3.7 percentsurge in December. The 0.6 percent increase in consumer spending was down onlyslightly from a 0.7 percent gain in February and no increase at all in January. Both the rise in incomes and spending came in better than economists had expected

[expected: 62.5/prior: 69.2]

The National Association of Purchasing Management-Chicago showed the April manufacturing index for the Midwest fell to 65.6 from 69.2, but was ahead ofeconomists' expectations.

Some information compiled from wire services.