U.S. Review
Mixed Data Unlikely to Change Fed’s Outlook
• Although some indicators, such as retail sales and industrial production, came in lower than expected, there is little reason to expect the Fed to alter its current course of monetary policy.
• Inflationary pressures picked up in April, with both the PPI and CPI accelerating in the month, while lower jobless claims indicate the labor market continues to improve.
• Homebuilding has picked up, with solid gains for starts and permits, though the housing recovery still remains on shaky ground.
Global Review
Japanese GDP Growth Surges as Eurozone Disappoints
• Growth in Japan in the first quarter came in at the fastest pace since 2011. In the Global Review on page 4 we discuss how this is less a reflection of Abenomics than it is a function of demand brought forward in anticipation of a tax increase.
• Also in this week’s Global Review we consider what the disappointing first quarter GDP report for the Eurozone means for policymakers at the European Central Bank.
Read the full report: Economic Research
Wells Fargo