- Real GDP quarter/quarter seasonally adjusted, annualized rate 1.1%. Previous was +1.2%
- GDP price index quarter/quarter seasonally adjusted +2.3%. Previous was +2.1%
While the headline is miserable consumer spending, which is what drives GDP, was better. Spending on Consumer Goods was +1.5%. Spending on Consumer Services was +1.42%. Real Final Sales of Domestic products was +2.35%. Real per capita Annual Disposable Income has seen an annualized +0.77% growth rate over the past 8 years.
The underlying cause is, as mentioned in my newsletter of last week, the high debt/GDP ratio on the part of the Federal government and it appears that we will have unacceptably low GDP growth for the foreseeable future.
Trade Deficit (July 2016)
- Deficit $59.3 billion. Previous was $64.5 billion
- Exports % change +2.4%. Previous was +0.6%
- Imports % change -1.3%. Previous was +2.3%
Corporate Profits (2ndQ2016)
- After-tax Profits year/year -2.2% -2.3%
Wholesale Trade (July 2016)
- Inventories month/month 0.3 % 0.2 % +0.0%. Previous was +0.2%
University of Michigan Consumer Sentiment (August 2016)
- Sentiment Index 89.8. Previous was 90.4.
This is supposed to be a leading indicator of Consumer Spending