Consumer Spending Expected to Be Up 0.5%

The government’s latest figures on consumer spending will probably do little to allay Federal Reserve concerns about unbridled economic growth and the threat of inflation, analysts said. Retail sales probably increased by 0.5% in May after rising 0.1% in April, led by demand for durable goods ranging from autos and computers to building materials and furniture, analysts said. The Commerce Department issues the report Friday.

Even as consumer spending perks up, producer prices have been tame. The Labor Department’s producer price index, also set for release Friday, will probably register a 0.2% increase for May following a 0.5% rise in April, analysts said. Outside of food and energy, the PPI probably rose 0.1% in May, the same as in April.

* The Federal Reserve is expected to report today that consumer credit accelerated in April. Borrowing through credit cards, auto loans and personal loans probably rose by $4.7 billion for the $1.6 billion during March, analysts said.

* On Tuesday, the Commerce Department is expected to report inventories at the nation’s wholesale level increased 0.2% in April after rising 0.3% during March, analysts said. Wholesale sales, meanwhile, probably increased 0.5% during the month after rising 1.7% in March, analysts said.

The Labor Department is scheduled to release revised figures on first-quarter productivity Tuesday. Worker output per hour probably increased at a 3.6% annual rate in the first quarter, previously reported as a 4% gain.

* Weekly statistics from the Labor Department on Thursday are expected to point to low unemployment across the U.S., with the number of first-time jobless holding just above the 300,000 level in the week ended June 5, analysts said. The Labor Department reported last week that the economy created 11,000 jobs in May, while the unemployment rate fell to 4.2% and average hourly wages rose 0.4%.

Another Labor Department report Thursday is expected to show import prices probably increased 0.2% in May after rising 0.8% in April, analysts said.