The July personal income and outlays report shows no change in real consumer spending, which is really bad news for GDP. Not adjusted for inflation consumer spending rose a scant 0.1%. Real personal income isn't any better with no change for the month. Personal income not adjusted for inflation rose 0.1%.
The BEA released corporate profits for Q2 2013 along with GDP. Corporate profits after tax increased 2.6% from Q1 2014 to $1,830.4 billion. Corporate profits after tax are also up 5.8% from a year ago. Corporate profits as a percentage of GDP are at an all time high and after tax profit margins per unit are also soaring to the stratosphere.
Q2 2013 real GDP was revised significantly upward to 2.5% from the 1.7% originally reported The revision gain was almost all a reduction in the trade deficit as we predicted earlier. The shrink in the trade deficit alone added 0.8 percentage points to Q2 GDP, a welcome change. Unfortunately this is a fluke.
The Institute for Policy Studies has released a no holds barred report on CEO pay, culture. Even the study title screams outrage, Executive Excess 2013: Bailed Out, Booted, and Busted. Every year there is a list of the top 25 highest paid CEOs and over the past 20 years this list has included 500 executives. Of those 500 who made the Wall Street Journal's top 25 highest paid Chief Executive Officer list, a whopping 38% were utter failures at their jobs.
The National Association of Realtors Pending Home Sales declined by -1.3% in July. This is the second month in a row where pending home sales have declined as June dropped by -0.4% Pending home sales have increased 6.7% from a year ago. Pending home sales are also back to November 2006 housing bubble year levels.
The June 2013 S&P Case Shiller home price index shows a 12.1% price increase from a year ago for over 20 metropolitan housing markets and a 11.9% change for the top 10 housing markets from June 2012. This is a slightly lower annual increase than last month The national quarterly index increased 10.1% for the year.
Those 50 and older, who were laid off over the past 5 years, have had an especially difficult time being rehired. Many have already drained their savings and now rely on government services. Some have taken their own lives.
July 2013 New Residential Single Family Home Sales plunged -13.4% to 394,000 in annualized sales and April through June were significantly revised lower. New Single Family Housing inventory is now a 5.2 month supply. New single family home sales are now 6.8% above July 2012 levels, but this figure is well within the ±18.6% margin of error.
Don't like the trade deficit, low GDP and the public outrage over the offshore outsourcing? Change the accounting method to make it go away! Such is the agenda of government statisticians it appears. How they are going to incorporate statistical lies into national accounts is shocking. Production location no longer matters, the thing that will count is ownership of the final product.
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