2ndQ2016 GDP Weak, revised down.

GDP (2ndQ2016)

– Real GDP quarter/quarter seasonally adjusted, annualized rate 1.1%. Previous was +1.2%
– GDP price index quarter/quarter seasonally adjusted +2.3%. Previous was +2.1%

While the headline is miserable consumer spending, which is what drives GDP, was better. Spending on Consumer Goods was +1.5%. Spending on Consumer Services was +1.42%. Real Final Sales of
Domestic products was +2.35%. Real per capita Annual Disposable Income has seen an annualized +0.77% growth rate over the past 8 years.

The underlying cause is, as mentioned in my newsletter of last week, the high debt/GDP ratio on the part of the Federal government and it appears that we will have unacceptably low GDP
growth for the foreseeable future.

 
Trade Deficit (July 2016)

– Deficit $59.3 billion. Previous was $64.5 billion
– Exports % change +2.4%. Previous was +0.6%
– Imports % change -1.3%. Previous was +2.3%

 
Corporate Profits (2ndQ2016)

– After-tax Profits year/year -2.2% -2.3%

 

Wholesale Trade (July 2016)

– Inventories month/month 0.3 % 0.2 % +0.0%. Previous was +0.2%

 

University of Michigan Consumer Sentiment (August 2016)

– Sentiment Index 89.8. Previous was 90.4.

This is supposed to be a leading indicator of Consumer Spending