Weekly Economic Update: May 30 – June 2, 2017
Weekly Economic Update: May 30 – June 2, 2017
CHART OF THE WEEK
Bringing America Back Again
Extrapolating CBO’s economic growth projection from 2007 would bring real GDP to $24.9 trillion in 2027 (2009 dollars); as recently as FY 2014, the Obama Administration projected economic growth that implied $22.9 trillion in 2027 (Obama OMB 2013); the FY 2018 Budget (Trump OMB 2017) aims for $22.7 trillion in 2027.
The Trump budget is attempting to use pro-growth policies such as tax reform and regulatory relief to spur our economy closer to what seemed achievable not too long ago.
LAST WEEK
News & Commentary Weekly Highlights
Wall Street Journal: U.S. Stocks Climb as Fed Signals June Rate Increase
Bloomberg: EU Finalizes Brexit Position as U.K. Threatens to Quit Talks
Bloomberg: Americans Are Paying $38 to Collect $1 of Student Debt
Fortune: Supreme Court Messes With Texas ‘Patent Troll’ Hotbed in Win for Tech Industry
Top Economic Indicator Highlights
Chicago Fed National Activity Index (CFNAI) (April)
April: 0.23 March: 0.00 February: 0.14
Noteworthy: Between January 2015 and November 2016 the 3-month moving average of CFNAI was negative (indicating below average growth). For five consecutive months, the index has been positive except for March 2017, when it was zero.
Gross Domestic Product (Second Estimate) (Q1-2017)
Second estimate: 1.2% First estimate: 0.7%
Noteworthy: BEA revised its estimate of first quarter real GDP growth up from 0.7% to 1.2%. The upward revision was attributed to greater consumption (spending by households) and nonresidential fixed investment (spending on equipment, machines, and structures by businesses), and a smaller decrease in state and local government spending than was initially reported.
JEC Releases
THIS WEEK
Upcoming Economic Data and Events
Tuesday
Personal Income/PCE Deflator (8:30am)
Consumer Confidence Index (10:00am)
Dallas Fed Manufacturing Survey (10:30am)
Wednesday
Chicago Purchasing Managers Index (9:45am)
Pending Home Sales (10:00am)
Dallas Fed Texas Retail Outlook Survey (10:30am)
Federal Reserve Board of Governors Beige Book (2:00pm)
Thursday
ADP National Employment Report (8:15am)
Productivity and Costs (8:30am)
Construction (10:00am)
ISM Manufacturing (10:00am)
Motor Vehicle Sales (4:00pm)
Friday
Employment Situation (8:30am)
Trade Balance (8:30am)