Data shows growing confidence in the U.S. economy

U.S economic data improved last week, lifting confidence that the U.S. economy is on solid footing. It appears the economy has survived the stronger U.S. dollar and confidence breakers of the Greek debt crisis and softer first quarter economic data.

The consumer appears to be in better shape than previously reported and business confidence and industrial activity appears to have improved. Retail sales for June were revised higher to unchanged and grew 0.6% in July. Industrial production also rebounded in July, gaining 0.6% after contracting for much of the year.

Economic activity appears to have stabilized after a slow start to the year. We believe the stronger U.S. dollar, possible rising U.S. interest rates, as well as softer growth from China remain risks to growth, although we anticipate growth should remain positive for the rest of the year, averaging just 2.5%.

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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.

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