Edit Module
Bookmark and Share Email this page Email Print this page Print Pin It
Feed Feed

Jun 4, 201402:03 PMOpen Mic

Send us your blog for consideration!

Market and economic update: Improving consumer confidence and consistently low initial jobless claims

The market’s attention is likely to be focused on this week’s economic data releases, especially May’s employment report. This data may help answer questions regarding the health of the U.S. economy.

First quarter U.S. gross domestic product (GDP) declined 1% (quarter over quarter annualized rate), down from the 0.1% originally estimated. Weakness was driven by slipping exports and inventory destocking.

This is the second quarter in a row we have seen inventory declines. Orders and manufacturing activity have not deteriorated, indicating to us the inventory cycle may be on the upswing after the temporary dislocation caused by winter weather. Durable goods orders have grown 7% over the past three months and manufacturing purchasing manager survey data has continued to indicate expansion.

The consumer remains healthy as indicated by stable to improving consumer confidence surveys and consistently low initial jobless claims. The May employment report is expected to see around 215,000 new nonfarm payroll jobs, according to a Bloomberg survey, which is around the average year to date, but faster than the average for 2013.

For more information please go to https://reserve.usbank.com/insights/market-update-6-2-14.

Robert L. Haworth, CFA, is a senior investment strategist and Darrell Behnke is the Madison market leader for the Private Client Reserve of U.S. Bank. 

This information represents the opinion of U.S. Bank and is not intended to be a forecast of future events or guarantee of future results. It is not intended to provide specific advice or to be construed as an offering of securities or recommendation to invest. Not for use as a primary basis of investment decisions. Not to be construed to meet the needs of any particular investor. Not a representation or solicitation or an offer to sell/buy any security. Investors should consult with their investment professional for advice concerning their particular situation. The factual information provided has been obtained from sources believed to be reliable, but is not guaranteed as to accuracy or completeness. The organizations mentioned in this publication are not affiliates or associated with U.S. Bank in any way.

Past performance is no guarantee of future results. All performance data, while deemed obtained from reliable sources, are not guaranteed for accuracy. Indexes shown are unmanaged and are not available for investment.

Click here to sign up for the free IB ezine — your twice-weekly resource for local business news, analysis, voices, and the names you need to know. If you are not already a subscriber to In Business magazine, be sure to sign up for our monthly print edition here.

Add your comment:
Bookmark and Share Email this page Email Print this page Print Pin It
Feed Feed
Edit Module

About This Blog

Make your voice heard with IB's "Open Mic." Send your blog entry to Online Editor Jason Busch at jason@ibmadison.com for consideration.



Atom Feed Subscribe to the Open Mic Feed »

Recent Posts

Edit Module