U.S. Review
Softer Consumer Spending to Start Q2
• The second look at Q1 GDP growth showed little change from the first release. The economy grew at a 2.4 percent annualized rate. Personal consumption was revised slightly higher.
• Personal incomes were flat in April as was wage and salary growth. Personal spending contracted for the month, falling 0.2 percent.
• Consumer confidence bounced back sharply in May as consumers’ expectations of future economy growth improved.
Global Review
Data Are Mixed, but Global Growth Remains Positive
• Sweden and Switzerland released Q1 GDP data this week that were stronger than expected. However, the ongoing recession in the euro area appears to be exerting some headwinds on economic growth in other European countries.
• Growth remains positive in Brazil and India, although the combination of slow growth and high inflation speak to the need for supply-side reforms in these economies. Japanese industrial production data for April show that economic growth remains solid in that economy.
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Wells Fargo