Positive Data across the Board.
GDP (2nd Q2014)
– Real (inflation adjusted) GDP +4.2. Revised from +4.0%. Previous quarter was -2.1%
– GDP Deflator (seasonally adjusted, annualized) +2.1%. Previous was +2.0%.
This is still good only by comparison with a down 1stQ. Growth for the year is still well below what we need and the BEA’s adjustments for inflation are suspect.
Jobless Claims (week ended 8/23/2014)
– New Claims (seasonally adjusted) 298,000. Previous was 299,000
– New Claims (unadjusted) were 248,622 a decrease of 841 from the previous week
– 4-week Moving Average 299,750. Previous was 301,000.
Initial Claims continue to be low. This is a hopeful sign for jobs.
Corporate Profits (2ndQ2014)
– After-tax Profits (year/year) +4.5%. Previous was +2.4%.
Total After-tax profits for 2ndQ2014 were $1.84 trillion.
Pending Home Sales Index (July 2014)
– Pending Home Sales Index 105.0. Previous was 102.5.
This is an encouraging sign for housing.