U.S. economic indicators appear quite strong and supported an impressive 4.1% annualized growth rate in second quarter Gross Domestic Product. Underlying growth would have been 5.1% excluding inventory de-stocking; ups and downs in inventories typically correct themselves the following quarter.
Retail sales growth also remains solid, up 6.4% from last year. After inflation, real retail sales growth is 3.5% and may be a reasonable measure of trendline economic growth. Consumer optimism, an excellent employment environment, and the impact of lower withholding from last year’s tax cuts suggest spending growth will continue.
Read More