Another Mediocre GDP

GDP (2nd Q2016)

– Real GDP quarter/quarter seasonally adjusted, annualized  +1.42%. Previous estimate was +1.1%
– GDP price index quarter/quarter seasonally adjusted, annualized  +2.3%. Previous was +2.3%.

This is up +0.33% from BEA’s previous estimate and up +0.59% from the prior quarter. Real final sales of domestic products were +2.58%.  Fixed investments were down for a 3rd consecutive quarter.  As usual the BEA’s deflator to get from nominal dollars to real (inflation adjusted) dollars explains almost the entire gain which vanishes if the more commonly accepted measure of inflation (CPI-U) is used.

All in all another mediocre report.

International Trade in Goods (August 2016)
– Trade Deficit Balance $58.4 billion. Previous was $58.8 billion

 

 

Initial Jobless Claims (week ended 9/24/2016)

– Initial Claims seasonally adjusted 254,000. Previous was 251,000
– Initial Claims  unadjusted, totaled 197,984 decrease of 7,665 from previous
– 4-week Moving Average   256,000. Previous was 258,250

Initial Jobless Claims remain low but are a poor surrogate for the overall jobs picture.

 
Corporate Profits (2ndQ2016)

– After-tax Profits year/year -1.7%. Previous was  -2.2%

 

Wholesale Trade (August 2016)

– Inventories month/month -0.1%. Previous was -0.1%.

The supply-side weakness in the GDP report for the 2nd Q is apparently continuing.

 
Pending Home Sales Index (August 2016)

– Pending Home Sales Index month/month -2.4%. Previous was +1.2%