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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsFriday’s Economic Data Dump Wasn’t All Bad News
Fridays Economic Data Dump Wasnt All Bad News
By Daniel Gross | Contrary Indicator 17 hours ago
snip//
At 8:30 a.m., the same instant that the Bureau of Labor Statistics delivered the buzzkill jobs report, the Commerce Department reported on personal income and spending for April. The result: Personal income rose .2 percent in April from March, and the March figure was revised upward to a gain of .4 percent. The savings rate dipped down to 3.4 percent. In other words, in April, Americans earned more than they did in March, and they spent a higher chunk of those earnings than they did in March.
Signs of Growth
Construction spending rose .3 percent in April from March, and was up 6.8 percent from April 2011, led by a strong increase in residential construction spending.
Later in the morning, the Institute for Supply Management published its May report on manufacturing business. Any reading over 50 indicates expansion in the manufacturing sector. It came in at 53.5, down from 54.8 in April, but still solidly in positive territory. The new orders component of the index rose significantly.
Throughout the day, auto sales trickled in. Auto sales are an extremely important metric. Cars are the biggest retail industry and the biggest manufacturing industry in the U.S. They represent big-ticket purchases that require the extension of significant credit. And by and large, the figures for May 2012 were positive. Chrysler reported that sales were up 30 percent from a year ago, while GM's sales rose 13 percent and Ford's rose 11 percent. Foreign-based auto companies staged even more dramatic increases. Toyota's sales were up 90 percent in May 2012 from May 2011 (a month in which its sales were heavily impacted by the tsunami), while Honda's rose 47 percent. It's likely the pace of car sales in May from April.
Construction spending, income, and car sales all speak to real, measurable activity in the economy. The data are all consistent with growth not impressive growth, but growth nonetheless. Macroeconomic Advisers, which plugs every bit of new incoming data into its existing model and continually updates its projections, said today that, after the flurry of data this week, it believes the U.S. economy is growing at a 2.4 percent rate in the current quarter. That's faster than the rate of growth in the first quarter.
more...
http://finance.yahoo.com/blogs/daniel-gross/friday-economic-data-dump-wasn-t-bad-news-180914715.html
rfranklin
(13,200 posts)because of all the jiggering that is done for seasonality.
ART CASHIN: This Month's Jobs Report May Have Been Distorted By Lehman Brothers
Read more: http://www.businessinsider.com/art-cashin-jobs-report-lehman-brothers-distortion-2012-6#ixzz1wdbeqCAH
moose65
(3,166 posts)The jobs report for May came out at 8:30 am on June 1. May was barely over with at that time! I thought the report was usually delayed by a few days in order to get more accurate information. Makes me wonder if we won't see an upward revision in July. Of course, the upward revision won't get nearly as many headlines as the report from yesterday!
sendero
(28,552 posts)... the almost universal downward revisions never do.