U.S. Review
Economy Contracts in Q1, Stronger Growth Ahead
• Revised Q1 GDP figures showed that the economy contracted 1.0 percent, pulled down by weather effects along with much slower inventory building and weaker export growth.
• Durable goods orders for April rose 0.8 percent following a 3.6 percent jump in March.
• Consumer confidence rose modestly in May after slipping in April as more consumers were concerned about current economic conditions.
• April personal income rose 0.3 percent while personal spending declined 0.1 percent for the month.
Global Review
Brazilian Q1 GDP Comes in as Expected
• The Brazilian economy increased 1.9 percent during the first quarter of the year, a slowdown from a 2.2 percent growth in the last quarter of 2013.
• However, the economy seems to have been weaker than the headline number suggests as exports were down 3.3 percent versus the last quarter of the year, and gross fixed investment was down 2.1 percent, the third consecutive quarter-toquarter negative reading for this sector.
• The Brazilian central bank stayed put with its tightening campaign, at least for now.
Read the full report: Economic Research
Wells Fargo