Today’s Q2 GDP estimate came in at 4%, better than expected. Moreover, the dismal -2.9% estimate of Q1 GDP was revised up to -2.1%. As for the underlying components, consumer spending increased at a 2.5% annualized rate, which is solid, and housing grew, which beats the shrinking it’s been doing for the last six months! 2014 GDP should now reach 1.8%, not the 1.375% previously expected. Reasonably decent news.
Tag Archives: Q1
New Zealand Recession?
New Zealand’s finance minister is suggesting his country could be on the precipice of a recession later this year & a flood-induced Q1 contraction in Australia seems assured. Inflationary pressures are building in emerging markets. Thus the need for interest rate hikes and liquidity drainage is a key reason why the equity markets in India, China and Brazil are down 16%, 12% and 11%, respectively, from recent highs.