Skip to main content

GDP better than expected; jobless claims up slightly

A very valuable resource -- and free -- I use is called Econoday. It has the latest in economic news, both upcoming and recent. Want to know the lastest EIA oil numbers. You'll have it as soon as it's posted. (One note: sometimes the market anticipates, and prices in news, or just yawns. But sometimes the news can cause some big price swings). Today, it seems the market doesn't care much.

 From just this morning after the GDP numbers:

At 2.6 percent, fourth-quarter GDP proved very solid and at the high end of expectations. Consumer spending, despite the sharp drop in December retail sales, leads the report, rising at a 2.8 percent annualized rate which is down from outsized rates of 3.5 and 3.8 percent in the prior two quarters but still more than respectable. 
Business investment is a positive surprise, rising 6.2 percent for nonresidential fixed investment and back near the high single-digit increases of the first half of last year when the corporate tax cut was driving spending. Residential investment, however, did prove weak, down 3.5 percent for the fourth straight quarterly decline that offers definitive evidence of how weak the housing sector has become.
Turning from rates of growth to contributions, consumer spending leads the way as it should at 1.92 percentage points with services making up more than half this gain. Business investment added 0.82 points with the intellectual property subcomponent showing the most strength. Inventories contributed 0.13 points in what, given the general strength in demand, looks like a favorable build. Trade, as usual, pulled down GDP but only by 0.22 points in the quarter. Government purchases were a fractional plus in the quarter. 
Last year was a very favorable one for the economy, posting four quarters of respectable to very strong growth led by a 4.2 percent second-quarter surge. Overall, GDP last year grew 2.9 percent. But the outlook for the first quarter is up in the air given the year-end slump in retail sales. Yet the unusual demand in the labor market, reflected again in this morning's jobless claims report, is the economy's bedrock of strength. Price data in today's report were also steady and favorable, at an as-expected 1.8 percent for the GDP price index and 2.0 percent for the core.
Labels:

Comments

Post a Comment

Thanks for the comment. Will get back to you as soon as convenient, if necessary.

Popular posts from this blog

Proper way to calculate CAGR using T-Sql for SQL Server

After reading (and attempting the solutions offered in some) several articles about SQL and CAGR,  I have reached the conclusion that none of them would stand testing in a real-world environment. For one thing, the SQL queries offered as examples are overly complex or don't use the correct math for calculating proper CAGR. Since most DBAs don't have an MBA or Finance degree, let me help.  The correct equation for calculating Compound Annual Growth Rate (as a percentage) is:  Some key points about CAGR:  The compounded annual growth rate (CAGR) is one of the most accurate ways to calculate and determine returns for anything that can rise or fall in value over time. Investors can compare the CAGR of two alternatives to evaluate how well one stock performed against other stocks in a peer group or a market index. The CAGR does not reflect investment risk. You can read a full article about CAGR  here .  To calculate the CAGR for an investment in a language like VB is pretty straight
Post a Comment
Read more

Top Five Consumer Cyber Security FAQs

Business, technology, environmental and economic changes are a part of life, and they are coming faster all the time. All of these changes and advancements can be distracting and make us more vulnerable to cyber scams. That's why protecting your credit is a critical part of protecting yourself from cyber security threats. Security researchers have reported that hackers and scammers are using any opportunity or vulnerability to target both individuals and companies. You may have already seen these attempts in the form of fake emails or calls. Here are the top five questions Equifax ®  has received about how individuals can protect themselves from cyber security threats and help to improve your credit protection. 1. How can I better protect my credit? Check your credit reports frequently. You can get free credit reports from the nationwide credit reporting agencies (Equifax, Experian ®  and TransUnion ® ) at annualcreditreport.com. Check your credit reports frequently to closely moni
Post a Comment
Read more

School Choice Passed by Texas Senate

The Texas Senate on Thursday approved a $500 million school choice bill mostly along party lines after hours of passionate debate. It will now head for consideration in the House, where members rejected similar proposals during the regular session. Senators passed Senate Bill 1 by a 18-13 vote, with one Republican joining all Democrats in voting against the measure. The bill will likely face steep resistance in the House, where Democratic members and many rural Republicans have vehemently opposed such proposals. School choice programs, also called education savings accounts or vouchers, use public money to help pay for a child’s private schooling. “We must recognize that a one-size-fits-all approach doesn't fit the needs of our diverse student population,” said Sen. Brandon Creighton, R-Conroe, who authored SB 1 and estimated the proposal could serve about 60,000 students. Texas has about 5.5 million children in public schools. Public schools have failed the American people, especi
Post a Comment
Read more