Jobless claims reach four-decade low
Last week was quiet in terms of economic data and political risks.
Greece is heading into debt negotiations this week, which we hope will wrap up before the next debt payment is due to the European Central Bank (ECB) on August 20. Wednesday’s Federal Open Market Committee (FOMC) meeting is likely to shed further light on the prospects for a September liftoff. Global economic data pointed to softer manufacturing activity in China and Europe, with flash purchasing manager surveys for July slipping.
In the United States, weekly initial jobless claims reached the lowest reading since 1973, and the index of leading economic indicators grew 2% in the second quarter, accelerating from just 0.2% growth in the first quarter. Data appear consistent with solid U.S. gross domestic product (GDP) growth in the second quarter. The preliminary indication for second quarter U.S. GDP growth will be released on July 30. Consensus expectations are for the U.S. economy to accelerate to 2.7% in the second quarter from a decline of 0.2% in the first quarter.
We believe the U.S. economy remains on solid footing and should grow at an average pace of 2.5% over the course of this year. Outside the United States, developed economies will likely see improving, but slow, economic growth, while emerging market economies are likely to see slower growth.
For more information, please go to: https://reserve.usbank.com/insights/market-economic-update.
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.