US data expected to signal improving consumer spending

In the post-Fed meeting press conference, Fed Chair Yellen highlighted the data-dependent nature of the forthcoming rate-tightening cycle. While the statement and her comments were more dovish than expected, the first rate hike likely in September as growth indicators improve over the next two quarters. 

Q1 GDP growth could be raised slightly on the back of stronger retail sales data, as well as housing and inventories. But data remains mixed. 

"We see durable goods orders growth staying in negative territory, weighed down by poor aircraft orders",says Standard Chartered.

In contrast, consumers seem to have returned to the malls after a few months of uneven spending, which should be reflected in a solid personal spending print. Core PCE inflation data likely stayed at 1.2% y/y in May, showing limited inflation pressures.