The Atlanta Fed this morning revised its GDP growth estimate for the second quarter up to 2.8%–a substantially stronger projection for economic output vs. the virtually flat 0.5% gain in Q1 (seasonally adjusted annual rate). The catalyst for today’s update: retail sales posted a strong rebound in April following a slump in March.
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Consumer spending revived in April after slumping in March, the US Census Bureau reports. Today’s update offers new support for arguing that economic growth will strengthen in the second quarter after virtually grinding to a halt in Q1, based on GDP data.
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The US stock market is looking wobbly again, but you wouldn’t know it by reviewing the trend in utility stocks. This interest-rate sensitive slice of equities continues to dominate the sector horse race, based on a set of proxy ETFs.
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● US jobless claims hit 14-mo high; analysts blame Verizon strike | Reuters
● US Consumer Comfort Index Drops to 5-mo Low on Econ Views | Bloomberg
● US import prices rise 0.3% for 2nd straight month | MarketWatch
● Bank of England: Brexit slowdown could lead to recession | Reuters
● Growth in Germany Accelerates on Higher Consumption | NY Times
● UN cuts global economic growth forecast for 2016 | Reuters
● Battling the invisible but real hyperinflation monster | Scott Sumner (Econolog)