• The Q2 GDP estimate came out weaker than expected (up 2.5% vs. 3.2%)
• The Fed’s Beige Book showed economic expansion in all districts (but many were at a slower pace of growth)
• Existing and new home sales were down
• Labor costs were up
• Consumer confidence rose
• New orders for durable goods grew faster than expected
• For the week, the S&P 500 rose 3.1% and the 10 year US Treasury note yield fell 6 basis points to 4.99%.

References: Vanguard, FT, IMF

This was a busy week, with eight important reports coming out. And they contained mixed news:

• Industrial Production was up a beefy 0.8% in June, exceeding expectations.
• Measuring inflation, the PPI rose 0.5% in June. The gain was largly driven by higher prices for food and energy (the core PPI rose 0.2% as expected).
• Another measure of inflation, the CPI, rose 0.2% in June (the smallest gain in 4 months). The core was up for the fourth consecutive month. Year over year, the CPI was up 4.3%, while the core was up 2.6% (the biggest increase since Dec. 2001).

References: Vanguard

Economic news was slim last week, however it was similiar to the slowing economy news of recent weeks.

• American’s consumer credit went up in May, partly driven by revolving debt
• Energy prices boosted the trade deficit
• Business inventories were up more than expected
• June’s retail sales fell
• For the week, the S&P 500 fell 2.3% to 1,236
• The yield of 10-year U.S. Treasury note declined 8 basis points to 5.06%

References: Vanguard

Quick one this week, under 5 minutes. There was quite a bit of economic news last week, including the following:

• Construction spending dropped in May from a downwardly revised April estimate.
• ISM Index fell slightly to 53.8, the lowest since August 2005. Levels over 50 indicate expansion of the manufacturing economy.
• Factory orders rose more than expected, by 0.7% in May after a 2.0% drop in April. Demand for nondurable goods pushed this increase.
• The June unemployment rate was unchanged from May’s at 4.6%.
• Average hourly earnings increased 8 cents, to $16.70.

The original Economic Week in Review is linked here.

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Several important economic reports were published last week. Here’s the link to Vanguard’s Economic Week in Review.

• The FOMC raised short term interest rates as expected to 5.25%
• The final estimate of GDP growth for the first quarter was an annualized 5.6%
• Personal income rose 0.4% in May. The personal savings rate (-1.7%) continued to fall.
• Consumer confidence rose one point to 105.7.
• The housing market still showed signs of softening in May.