LAST WEEK

News & Commentary Weekly Highlights:

• Wall Street Journal: Why U.S. GDP Shrank (Friday)
• Wall Street Journal: New Data Spotlights America’s ‘Contingent Workforce’ (Friday)
• Market Watch: The Median Household Is Still Worse Off Now Than Before the Recession (Thursday)
• Bloomberg Business: ECB Warns of Contagion Risk If Greece Deal Not Reached Fast (Wednesday)
• Wall Street Journal: $25,887,000,000,000 (Monday)

 

Top Economic Indicator Highlights:

Gross Domestic Product (second estimate, Q1)

• Real GDP Quarterly Change (annual rate): -0.7%, Previous quarter: 2.2%, Recovery avg.: 2.2%
• Noteworthy: Overall GDP number fell into negative territory from the advance estimate to the second estimate; the advance estimate was 0.2%. Imports increased more and private inventories grew less than previously estimated. Negative contributions from exports, nonresidential fixed investment, and state and local government spending were partially offset by positive contributions from personal consumption expenditures, private inventory investment, and residential fixed investment. Real final sales of domestic product (which is GDP minus the change in private inventories) fell 1.1%.
• Current Forecasts for Q2 2015: The Federal Reserve Bank of Atlanta’s current second quarter 2015 forecast for annualized GDP growth is 0.8%, Wells Fargo estimates 1.7%, and Macroeconomic Advisers revised their forecast to 2% growth. Wall Street Journal’s survey of economists expects a rebound of 2.8% growth.

 

THIS WEEK

Upcoming Economic Reports & Releases:

Major Indicators

• Personal Income and Outlays (8:30am, Monday)
• ISM Manufacturing Index (10am, Monday)
• Construction Spending (10am, Monday)
• Motor Vehicle Sales (Tuesday)
• Factory Orders (10am, Tuesday)
• International Trade Balance (8:30am, Wednesday)
• ISM Non-Manufacturing Index (10am, Wednesday)
• Productivity and Costs (8:30am, Thursday)
• Employment Situation (8:30am, Friday)

 

Chart of the Week: