GDP, Factory Orders Expected to Gain

Figures on growth, manufacturing, housing and employment this week are expected to point to a U.S. economy that’s in no danger of slowing much, even if the Federal Reserve raises interest rates next week. Gross domestic product, the total output of goods and services, probably expanded at a 4.2% annual rate in the first quarter, higher than the government’s previous estimate of 4.1%. The Commerce Department is scheduled to release the report, the final first-quarter GDP estimate, on Friday.

The strength in the economy is widespread. Factory orders for big-ticket goods, ranging from aircraft and steel girders to home appliances and autos, probably increased 0.9% in May after falling 2.1% in April. The Commerce Department is scheduled to release the report Thursday. Manufacturers are benefiting from strong domestic demand as well as a rebound in export orders.

Also Thursday, the Labor Department is expected to report that first-time claims for state unemployment benefits hovered at a level that’s consistent with low unemployment. New jobless claims probably totaled 306,000 in the week ended June 19, up from 297,000 the previous week, analysts said.