2nd Quarter GDP Growth Shows Sharp Rebound to 4.0%
The Advance Estimate of 2nd Quarter GDP growth released today by the Bureau of Economic Analysis (www.bea.gov) showed a sharp rebound in economic activity to 4.0%. This is good news and confirms most views that the poor 1st Quarter performance of the US economy was rooted in the adverse winter weather felt across much of the lower 48. The BEA also revised upward 1st Quarter GDP from -2.9% to -2.1%. Understanding the different components of this good data will suggest how the stock market may move in the coming weeks. An early read shows strong consumer spending, brisk auto sales, increased business investment, a significant build up in inventories and increased spending by state and local governments. One negative was that imports grew faster than exports (Note - New Exports are a deduction in the GDP calculation).
For more, please click on the link below:
www.marketwatch.com/story/economy-snaps-back-grows-4-in-spring-2014-07-30-9103012?link=MW_suggested
On July 29th the Conference Board Consumer Confidence Index (www.conference-board.org) improved to a reading of 90.9, the highest level since October of 2007. This strong reading could suggest that more good news and economic data may be in the future.
