The U.S. economy’s latest report card — featuring fresh readouts on growth, inflation, spending and wages in the first three months of the year — is set to include a mix of good and bad marks.
The headline measure of first-quarter economic growth will appear weak, as a ballooning trade deficit and slower inventory growth masked solid consumer spending. Income gains in March were likely erased by an acceleration in inflation.
Resilient consumption, robust business investment, firmer wage growth and the fastest price gains in decades lend support to a more aggressive policy response from the Federal Reserve next week, when officials are expected to raise interest rates by the most since 2000.
