Business Outlook

THE WEEK AHEAD

CONSTRUCTION SPENDING

Tuesday, June 1, 8:30 a.m.

Construction spending probably increased by 1% in April, bouncing back after a 0.8% drop in storm-beset March.

NAPM SURVEY

Tuesday, June 1, 10 a.m.

The National Association of Purchasing Management's index of industrial activity likely rose to 50.5% in May, up from 49.7% in April. The gain would indicate that the factory sector is growing again.

PERSONAL INCOME

Tuesday, June 1, 10 a.m.

Personal income probably edged up just 0.2% in April, say economists surveyed by McGraw-Hill Inc.'s MMS International. Income was up by 0.6% in March, lifted by farm subsidies. Consumer spending likely rose a stronger 0.8% in April, after slipping 0.2% in March.

LEADING INDICATORS

Wednesday, June 2, 8:30 a.m.

The government's composite index of leading indicators probably rose 0.5% in April, the MMS economists project. In March, the index dropped a sharp 1%.

NEW SINGLE-FAMILY HOME SALES

Wednesday, June 2, 10 a.m.

New houses likely sold at an annual rate of 650,000 in April, up from 637,000 in March. Low mortgage rates and better labor markets are keeping the housing rebound going. The expected April sales number would be the best this year.

EMPLOYMENT

Friday, June 4, 8:30 a.m.

The median MMS forecast calls for a 125,000 rise in nonfarm payrolls in May, just a bit better than the 119,000 jobs created in April. The range of forecasts, however, is slanted toward a larger May increase. Even the lowest projection is for a 95,000 gain. May's unemployment rate is expected to remain at 7%.

FACTORY INVENTORIES

Friday, June 4, 10 a.m.

Manufacturers' inventories probably rose by 0.2% in April, the same small gain as in March.JAMES C. COOPER AND KATHLEEN MADIGAN