May’s key US economic events in 10 words.

The US economy is one of the most powerful and complex in the world, and it’s always important to keep an eye on the economic events and releases that could impact it. May is a key month for the US economy, as there are several key events and releases that could have significant implications for the direction of the economy. Here are the top US economic events to watch out for in May.

1. US Employment Report (May 7)

The US Employment Report, which is released on the first Friday of every month, provides a comprehensive overview of the state of the US labor market. This report includes data on key employment indicators such as nonfarm payrolls, unemployment rate, and average hourly earnings. In April, the US economy added 916,000 jobs, much higher than the expected 660,000. The unemployment rate also dropped to 6.0%, its lowest level since the pandemic started. The May report is expected to show another strong performance as the US reopens and vaccination rates increase.

2. Consumer Price Index (May 12)

The Consumer Price Index (CPI) is a key measure of inflation, showing the change in prices of a basket of consumer goods and services. Higher inflation can lead to higher interest rates, which can impact consumer spending and investment. In April, the CPI surged 4.2% year-over-year, marking the highest level since 2008. This May report is expected to bring another significant increase in inflation as the economy rebounds from the pandemic.

3. Retail Sales (May 14)

Retail sales are a key measure of consumer spending, which is a critical driver of economic growth. In March, retail sales increased by 9.8% month-over-month, mostly due to the stimulus checks and the reopening of businesses. The May report will provide a clearer picture of whether this trend continued in April or if consumer spending slowed down.

4. Industrial Production (May 17)

Industrial production measures the output of US factories, mines, and utilities. It includes data on manufacturing, mining, and utilities production, as well as capacity utilization. Industrial production has been steadily recovering since the pandemic lows, with the latest report showing the highest level since before the pandemic. The May report is expected to show continued improvement.

5. Federal Open Market Committee Meeting (May 25-26)

The Federal Open Market Committee (FOMC) is the body that sets US monetary policy. The FOMC meets eight times a year to assess economic conditions and set short-term interest rates. The May meeting could be especially important since the US economy is at a critical juncture, with the recovery in full swing but concerns rising around inflation. The FOMC is expected to continue supporting the economy but could signal a shift in policy if inflation continues to rise.

6. Gross Domestic Product (May 27)

Gross Domestic Product (GDP) is the broadest measure of economic activity, showing the total output of goods and services in the US. It includes data on consumer spending, business investment, government spending, and net exports. In the first quarter of 2021, the US economy grew by 6.4%, marking the second-fastest pace since 2003. The May report will provide a more detailed breakdown of the components of economic activity and could show whether the recovery is broad-based or concentrated in certain sectors.

Conclusion

May will be a critical month for the US economy, with several key events and releases on the calendar that could shape its path ahead. Investors and economists will be closely watching the employment report, inflation data, retail sales, industrial production, the FOMC meeting, and GDP. Whether the recovery continues at its current pace or slows down will depend on a myriad of factors, including the pace of vaccinations, government stimulus, and the evolution of the pandemic. In any case, staying informed about the latest economic data and events is critical for investors, business leaders, and policymakers alike.