Economic Report:
"Real gross domestic product -- the value of the goods and services produced by the nation’s economy less the value of the goods and services used up in production, adjusted for price changes -- increased at an annual rate of 0.5 percent in the first quarter of 2016, according to the "advance" estimate released by the Bureau of Economic Analysis. In the fourth quarter, real GDP increased 1.4 percent.
Personal consumption expenditures are decelerating; they grew 3.6% in 2Q15, but only 1.9% in 1Q16. For the first time in 4 quarters, durable goods purchased contracted (-1.6%) while spending on non-durable goods was weak (+1%). Overall capital investment contracted .7% in 3Q15, increasing to -3.5% in 1Q16. CRE and IP investment dropped the last three quarters while investment in equipment declined the last two. And exports contracted 2.6% in 1Q16. The above report contains only three positives: the consumer is still spending (albeit weakly), residential investment is gaining ground, and local government spending ticked up 2.6%. Aside from those points, the report contains little to cheer about.
This is the type of environment companies struggle in."
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