Economic Reports 04/27/07
Summary: Stagflation is on a rampage with no relief in sight as the consumer gets squeezed with energy prices rising and housing values falling.
Mich Sentiment-Rev. Apr 87.1 vs prior 85.3 Ho Humm...
GDP-Adv. Q1 +1.3% vs prior +2.5% Full Report
Inside the number: The weakest growth in 4 years. Chain Deflator-Adv. Q1 +4% vs prior +1.7%, the most in 16 years.
A downturn in exports, a deceleration in PCE for nondurable goods, a downturn in federal government spending, negative contributions from residential fixed investment and private inventory investment.
The debauched dollar is helping multinational sales & earnings, but its not helping exports, which fell 1.2% vs Q4 +10.6%, the biggest decline in nearly four years.
Consumer's are getting squeezed as Q1 nondurable PCE spending decelerated +2.9% vs Q4 +5.9%.
Military spending is down 6.6% vs Q4 +12.3% dragging down real federal government consumption expenditures and gross investment -3.0% vs Q4 +4.6%.
The housing debacle continues with real residential fixed investment -17% vs Q4 -19%.
Final sales to domestic purchasers decelerated to a multi year low of +1.9%. And as demand wanes inventories continue to bloat Q1 +$14.8B; Q4 +$22.4B; Q3 +$55.4B.
The Nattering One muses... will Q2 GDP be near zero or negative? Perhaps...
Mich Sentiment-Rev. Apr 87.1 vs prior 85.3 Ho Humm...
GDP-Adv. Q1 +1.3% vs prior +2.5% Full Report
Inside the number: The weakest growth in 4 years. Chain Deflator-Adv. Q1 +4% vs prior +1.7%, the most in 16 years.
A downturn in exports, a deceleration in PCE for nondurable goods, a downturn in federal government spending, negative contributions from residential fixed investment and private inventory investment.
The debauched dollar is helping multinational sales & earnings, but its not helping exports, which fell 1.2% vs Q4 +10.6%, the biggest decline in nearly four years.
Consumer's are getting squeezed as Q1 nondurable PCE spending decelerated +2.9% vs Q4 +5.9%.
Military spending is down 6.6% vs Q4 +12.3% dragging down real federal government consumption expenditures and gross investment -3.0% vs Q4 +4.6%.
The housing debacle continues with real residential fixed investment -17% vs Q4 -19%.
Final sales to domestic purchasers decelerated to a multi year low of +1.9%. And as demand wanes inventories continue to bloat Q1 +$14.8B; Q4 +$22.4B; Q3 +$55.4B.
The Nattering One muses... will Q2 GDP be near zero or negative? Perhaps...
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