U.S. Review
A Mostly Disappointing Week for Economic Data
• The third look at first quarter GDP showed that the economy contracted at a 2.9 percent pace. A sizable portion of the downward revision was due to softer-than-estimated
consumer spending for the quarter.
• Housing market data came in better than expected with both new and existing home sales posting impressive gains.
• Durable goods orders fell in May after three months of rather impressive gains. Core capital goods shipments data signaled a stronger pace of business investment for the second quarter.
Global Review
Still Waiting for Better News from the Global Economy
• The news from the global economy during the past week was not very uplifting. Economic activity has not significantly deteriorated across the world, but it is clear that it remains extremely fragile while there are little signs that it may be strengthening.
• On a positive note, the HSBC/Markit Chinese Manufacturing PMI was stronger than expected and above the 50 demarcation line for the first time since December 2013.
Read the full report: Economic Research