After growing for fifteen consecutive months, U.S. service sector activity unexpectedly contracted in the month of April, according to a report released by the Institute for Supply Management on Friday. The ISM said its services PMI dipped to 49.4 in April from 51.4 in March, with a reading below 50 indicating contraction. Economists had expected the index to inch up to 52.0.

Euro area jobless rate remained unchanged at a record low for the fifth month in a row in March and the unemployment decreased, while a tight labor market could urge the European Central Bank to remain cautious even as policymakers gear up for an interest rate cut in June. The seasonally adjusted unemployment rate was 6.5 percent in March, which is the same level as in the previous four months.

After reporting stronger than expected job growth over the past several months, the Labor Department released a report on Friday showing employment in the U.S. increased by much less than expected in the month of April. The Labor Department said non-farm payroll employment climbed by 175,000 jobs in April after surging by an upwardly revised 315,000 jobs in March.

Unemployment figures from the euro area and Spain, and the purchasing managers' survey results for the services sector from the U.K. are the highlights on the economics front on Friday. Eurozone jobless rate is expected to remain steady at 6.5 percent in March. Eurostat is set to release the data at 05:00 am ET.

New orders for U.S. manufactured goods surged in line with economist estimates in the month of March, according to a report released by the Commerce Department on Thursday. The Commerce Department said factory orders shot up by 1.6 percent in March after jumping by a downwardly revised 1.2 percent in February.

A report released by the Labor Department on Thursday showed labor productivity in the U.S. increased by less than expected in the first quarter of 2024. The Labor Department said labor productivity rose by 0.3 percent in the first quarter after spiking by a revised 3.5 percent in the fourth quarter. Economists had expected productivity to climb by 0.8 percent.

The Organization for Economic and Co-operation and Development on Thursday lifted the global growth forecast for this year and next despite some substantial concerns about the outlook. The Paris-based think tank raised the global growth forecast for this year to 3.1 percent from 2.9 percent projected in February. The outlook for next year was lifted to 3.2 percent from 3.0 percent.

The U.S. trade deficit edged slightly lower in the month of March, according to a report released by the Commerce Department on Thursday. The Commerce Department said the trade deficit narrowed to $69.4 billion in March from a revised $69.5 billion in February Economists had expected the trade deficit to inch up to $69.1 billion from the $68.9 billion originally reported for the previous month.

With the more closely watched monthly jobs report looming, the Labor Department released a report on Thursday showing first-time claims for U.S. unemployment benefits remained flat in the week ended April 27th. The report said initial jobless claims came in 208,000, unchanged from the previous week's upwardly revised level. Economists had expected jobless claims to inch up to 212,000.

Final factory Purchasing Managers' survey from the euro area is the major report due on Thursday. At 2.30 am ET, the Federal Statistical Office is scheduled to issue Swiss consumer prices and retail sales figures. Inflation is seen at 1.1 percent in April, up from 1.0 percent in March. Sales are forecast to grow 0.2 percent annually in March, in contrast to the 0.2 percent fall in February.

The U.S. dollar turned in a weak performance on Wednesday, weighed down early on in the New York session by data showing a contraction in the nation's manufacturing activity and a drop in job openings, and then reacting to the Federal Reserve's policy statement, and Jerome Powell's comments.

Citing a lack of further progress toward its 2 percent inflation objective in recent months, the Federal Reserve on Wednesday announced its widely expected decision to leave interest rates unchanged. Members of the Fed also reiterated they need "greater confidence" inflation is moving sustainably toward 2 percent before they consider cutting interest rates.

Reflecting a decrease in spending on private construction, the Commerce Department released a report on Wednesday showing U.S. construction spending unexpectedly edged slightly lower in the month of March. The report said construction spending dipped by 0.2 percent to an annual rate of $2.084 trillion in March, while economists had expected construction spending to rise by 0.3 percent.

The Institute for Supply Management released a report on Wednesday showing a modest contraction by U.S. manufacturing activity in the month of April. The ISM said its manufacturing PMI slipped to 49.2 in April from 50.3 in March, with a reading below 50 indicating contraction. Economists had expected the index to edge down to 50.0.

Private sector employment in the U.S. increased by more than expected in the month of April, according to a report released by payroll processor ADP on Wednesday. ADP said private sector employment shot up by 192,000 jobs in April after jumping by an upwardly revised 208,000 jobs in March.

The UK manufacturing activity slid into contraction at the start of the second quarter as improvement in output and new orders were short-lived amid uncertain market conditions, client destocking and supply chain disruptions. The S&P Global final manufacturing Purchasing Managers' Index fell to 49.1 in April from a 20-month high of 50.3 in March, survey results showed on Wednesday. The score was

UK house prices declined unexpectedly in April, reflecting affordability pressures amid rising longer term interest rates, data published by the Nationwide Building Society revealed on Wednesday. House prices posted a monthly decline of 0.4 percent after easing 0.2 percent in March. Prices were expected to climb 0.1 percent.

The U.S. dollar gained against its major counterparts on Tuesday after data showing a jump in employment cost index raised concerns the Federal Reserve will further delay an interest rate cut.

A report released by the Conference Board on Tuesday showed consumer confidence in the U.S. deteriorated by much more than expected in the month of April. The Conference Board said its consumer confidence index slid to 97.0 in April from a downwardly revised 103.1 in March. Economists had expected the index to dip to 140.0 from the 104.7 originally reported for the previous month.

MNI Indicators released a report on Tuesday showing Chicago-area business unexpectedly contracted at an accelerated rate in the month of April. The report said the Chicago business barometer dropped to 37.9 in April from 41.4 in March, with a reading below 50 indicating contraction. Economists had expected the index to rise to 44.9.

The euro area economy expanded in the first quarter after two consecutive declines as all big four economies exhibited better performance, boosting hopes of a sustained recovery this year. Gross domestic product grew by a faster-than-expected 0.3 percent sequentially following a 0.1 percent fall each in the fourth and third quarters of 2023, preliminary flash estimates from Eurostat showed.

The German economy avoided a recession in the first quarter on exports and investment in construction, preliminary data from Destatis showed on Tuesday. Gross domestic product grew a more-than-expected 0.2 percent sequentially in the first quarter, in contrast to the revised 0.5 percent decrease in the preceding three months.

UK mortgage approvals increased to a one-and-a-half year high in March as the impact of higher interest rates waned, data published by the Bank of England showed on Tuesday. Net mortgage approvals for house purchases increased to 61,300 in March from 60,500 in February. This was the highest since September 2022 and also above the expected level of 61,000.

Flash quarterly national accounts from Eurozone and other major euro area economies are due on Tuesday, headlining a hectic day for the European economic news. At 1.30 am ET, France's statistical office INSEE is scheduled to release flash GDP and consumer spending figures. The second largest euro area economy is forecast to grow 0.1 percent sequentially in the first quarter.

The U.S. dollar turned in a weak performance against its major counterparts on Monday with traders awaiting the Federal Reserve's monetary policy announcement on Wednesday. The accompanying statement and Fed Chair Jerome Powell's post meeting press meet are eyed for clues about the central bank's future interest rate moves.