Source http://www.nat.com/
What is the economic news indicating?
HOUSING STARTS - UP
April Housing starts beat market expectations, rising 5.8%. The greatest increase was in single family starts with a moderate decline in multi-family starts.
RETAIL SALES - UP
US retail sales ROSE in May for the seventh month in a row and beat market expectations. The prior two months gains were revised higher. This is the sixth straight year-on-year gain and is, following a 14 year-on-year decline. Core Retail Sales excluding and including gasoline rose. On one side consumers are deleveraging their credit cards while they increase spending despite high unemployment, sluggish income growth, and relatively tight credit.
CONSUMER SENTIMENT - UP
Consumer Sentiment also rose as did Current Conditions and Consumer Expectations. On a trend basis, sentiment has been improving since March 2009. Consumers continue to worry about weak labor markets, high foreclosures, expensive energy and tight credit conditions.
INDUSTRIAL PRODUCTION - UP
Industrial activity increased strongly in April, its ninth increase in the past 10 months. However the output level is still well below its recent cyclical peak.
EMPIRE STATE MANUFACTURING SURVEY - UP
Manufacturing activity of New York based firms ROSE in May for the tenth consecutive month. New orders slowed; Shipments grew; Unfilled Orders declined; and Inventories expanded for the third straight month following 2 years of decline, indicating that inventory liquidation has ended.
"However, because of the shape decline in factory activity in the previous 15 months, activity remains subdued. Nevertheless, factory executives are still optimistic about a continuing and strengthen recovery over the next 6 months. Manufacturing is actively participating in the cyclical expansion of the economy," says Steven A. Wood of Insight Economics, LLC.
BUSINESS INVENTORY - UP
The inventory liquidation cycle is over and modest inventory accumulation is now taking place.
CONSUMER SENTIMENT - UP
Consumer Sentiment rose as did Current Conditions and Consumer Expectations. On a trend basis, sentiment has been improving since March 2009. Consumers continue to worry about weak labor markets, high foreclosures, expensive energy and tight credit conditions.
The economy is in recovery, howbeit modestly.
