Wells Fargo Weekly Economic & Financial Commentary – June 26, 2015
Economic Activity Is Showing Encouraging Signs
- First-quarter real GDP growth was revised up to a decline of 0.2 percent in the third estimate. Although the negative reading is alarming, we suspect statistical noise is at the heart of the weak figure. Real GDI, which measures income versus spending, is a more instructive measure to gauge first quarter growth. Real GDI increased 1.9 percent in the first quarter.
- Housing sales activity is finally breaking out of its rut. Existing and new home sales increased more than expected in May and the long-time stagnant first-time home buyer component also improved. Low inventories, however, will continue to be the largest impediment for overall activity.
Click here to read the full Wells Fargo Weekly Economic & Financial Commentary for June 26, 2015.
Tags: economy