GDP: All that Glitters…: 2nd quarter real GDP numbers surprised economists, coming in at 2.8% increase versus the consensus expectations of 2.0%. Both economists I follow seem to think that all the glitters is not gold:
ITR Economics’ Brian Beaulieu was somewhat surprised by the strength of the GDP increase but shares concern over several components, especially housing, that deserve your attention. His latest edition of FedWatch explains more.
Dr. Brian Wesbury warns that “Because of today’s numbers….many analysts and investors may think the economy is in the clear…. By contrast, we believe the lags between monetary policy and the economy are long and variable and that the tighter monetary policy of the last couple of years has yet to have its full affect.” Check out his thoughts on “2nd Quarter GDP.”
Unpacking Employment: One of the foundations of any economy is a vibrant, well diversified work force. Many businesspeople follow the overall employment trends but it’s easy to miss what’s really going on with unemployment unless we break the numbers down.
If you’d like a quick primer on unpacking employment data, check out Brian Wesbury’s latest “Three on Thursday Post” in which he unpacks non-farm, non-core and full time vs part time aspects of the labor force…and how these different metrics might change how you are thinking about the economy.
