Key US data previews - Nomura

Analysts at Nomura previewed the forthcoming key US data for the end of the week. 

Key Quotes:

"Durable goods orders: Durable goods orders in April likely declined 1.2% m-o-m (Consensus: -1.3%), driven by weaker orders of new transportation equipment. We think new orders of autos and civilian aircraft and parts softened during the month while defense aircraft orders likely picked up. Excluding volatile transportation equipment, we forecast a 0.6% m-o-m increase in durable goods orders (Consensus: 0.5%). Incoming data point to solid momentum in industrial activity heading towards end-Q2. Production of ex-transportation durable goods rose solidly by 0.7% m-o-m in April after a decline in March. Moreover, incoming business surveys point to elevated activity near term despite concerns over US trade policy. 

University of Michigan consumer sentiment: Consumer sentiment remained elevated in the University of Michigan’s preliminary May survey. Trade concerns appear to have ebbed over recent weeks as consumers increasingly focus on a low unemployment rate and steady income growth, a good sign for consumer spending in Q2. Inflation expectations at the one-year horizon increased 0.1pp to 2.8%, possibly reflecting a recent acceleration in gas prices, while longer-term inflation expectations held steady at 2.5%."