In the US on Tuesday, housing start data for May is expected to show the residential construction industry surging upwards. Housing starts for May are forecast to be 950,000, a near 12 per cent increase on the 853,000 recorded at the same stage last year. Building permits figures released on the same day are expected to be slightly lower than 2012's 1.01m.
Spring is a traditional house buying time in the UK and potential first-time buyers will look more depressed than ever when contemplating the latest rise in house prices on Tuesday. The Office for National Statistics is due to give its revised assessment for April's house price rise, with initial estimates of a 2.7 per cent increase likely to be upgraded given the effect of government support for mortgage lending. On the same day, figures for UK consumer and retail price inflation (RPI) for May are also due to be released. These aren't expected to shift much as the Bank of England's (BoE) own forecasts show inflation, by all definitions, staying well above the 2 per cent target for the next two years. Prior to the announcement, RPI of 2.9 per cent was expected, with CPI coming in at 2.4 per cent. In addition, the BoE's minutes from the June Monetary Policy Committee meeting are released on Wednesday.
In Europe, Germany has been the region's economic engine but recent indicators have shown the economy struggling to maintain its momentum, with falls in inward investment particularly noticeable. Therefore, the closely watched ZEW economic confidence survey, also out on Tuesday, will be more closely examined than usual. Confidence has fallen this year, but the ZEW is still expected to register a steady rating of around 36; such caution is perhaps understandable given that Wednesday's eurozone construction data is expected to show further falls as southern europe suffers.
The eurozone also takes centre stage on Thursday with a host of purchasing managers' index (PMI) data for the export-led manufacturing and services industries expected to show a rating of below 50, indicating a fall in expectations as we head into high summer. Finally, on Friday, UK taxpayers will see how much they owe the markets after the public sector net borrowing requirement for May is released.
Investors Chronicle's economist, Chris Dillow, is on annual leave.
