GDP Grows Slower but in Better Places.

GDP (4thQ2014)

– Real (inflation adjusted) GDP was +3.2%.  This is the “advanced” estimate which has accurate data for only 2 of 3 months for several of the GDP components.  A quick look shows business inventories slowing their growth and consumers spending more.  I will publish the detailed monthly analysis by Rick Davis of Consumer Metrics in my newsletter of tomorrow.

– GDP deflator was +1.3%. Previous was +2.0%.  This is a measure of inflation in which each component is weighted according to its contribution to GDP.

The growth may be slower but this report shows stronger growth in the right place (consumer spending.)

Jobless Claims (week ended 1/25/2014)

– New Claims (seasonally adjusted) 348,000. Previous revised to 329,000. – 4-week Moving Average (seasonally adjusted) 333,000. Previous revised to 332,250 – New Claims (not seasonally adjusted) totaled 354,604 a decrease of 59,707 from the previous week.

Pending Home Sales (December 2013)

– Pending Home Sales Index  92.4. Previous was 101.2.

The demand for housing is softening.