Q1 2013 real GDP was revised downward slightly to 2.4% from 2.5%. This is still an improvement, from the fourth quarter 0.4% GDP showing a stagnant economy. Consumer spending was the biggest improvement while increased imports posed a major economic drag. Government spending declines continue to be an economic damper. The revision shows more consumer spending than originally reported, less investment, less imports, less exports and government expenditures were less than previously estimated. Generally speaking a 2.4% GDP implies moderate economic growth, yet overall real demand in the economy is still fairly weak.
There is a war going on and it is against the U.S. worker. Tech companies have formed lobbyist groups, phony think tanks and social media traps. CEOs luncheon with the President of the United States, whispering their demands in the President's ear and he heartily obliges them Tech companies even wrote legislation, which was promptly passed by the Senate Judiciary committee under the guise of Comprehensive Immigration Reform.
Obama has just made Jason Furman Chairman of his Economic Council of Advisers. Jason Furman has ties to the Robert Rubin, Larry Summers, the Hamilton Project and the Brookings Institution. They promote bad trade deals, offshore outsourcing and the use of foreign guest workers to displace and labor arbitrage American workers.
The March 2013 S&P Case Shiller home price index shows a 10.9% price increase from a year ago for over 20 metropolitan housing markets and a 10.3% change for the top 10 housing markets from March 2012. This is the highest yearly gain since April 2006.
Surprise, when tax revenues increase the deficit goes down. Such was the news of a new CBO update on the federal budget deficit.
If the current laws that govern federal taxes and spending do not change, the budget deficit will shrink this year to $642 billion, CBO estimates, the smallest shortfall since 2008.
The Durable Goods, advance report shows new orders increased by 3.3% for April 2013. Wall Street soars, yet the gains are on volatile aircraft new orders. Aircraft and parts new orders from the non-defense sector increased 18.1% and jumped 53.3% from the defense sector. Excluding all transportation, new orders rose 1.3%. Core capital goods new orders increased 1.2%.
April New Residential Single Family Home Sales increased 2.3% to 454,000 in annualized sales. New Single Family Housing inventory is at a 4.1 month supply. New single family home sales are now 29.0% above April 2012 levels, but this figure has a ±20.7% margin of error. A year ago new home annualized sales were 352,000.
Corporate culture, HR hound dogs who hunt the squeaky wheel, bullying, abuse and politics abound for working America today. For those who still have a job, America has turned into a survivor game. No longer are workers respected and treated as human beings. Even those most educated and skilled are treated like pond scum
The April Consumer Price Index dropped -0.4% from March. CPI measures inflation, or price increases. The culprit is gas prices again, which plunged -8.1% for the month. This is the biggest monthly decline in overall CPI since December 2008, when the economy was at risk of a deflationary spiral. Take food and energy items out of the index and CPI actually rose 0.1% from March, so once again volatile retail gasoline prices are wreaking havoc in the overall consumer price index, as well as consumer's monthly budgets.
The DOL reported people filing for initial unemployment insurance benefits in the week ending on May 11th, 2013 was 360,000, a 32,000 increase from the previous week of 328,000 and a six week high. This is the wrong direction for weekly initial unemployment claims and shows, once again, as far as jobs are concerned, the recession never ended.
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