Double Dip Recession in Q4 - "Simply Out of the Question" - According to a Reuters report, The Economic Cycle Research Institute, an independent forecasting group, said its Weekly Leading Index annualized's growth rate soared to a 38-year high of 19.6% from a revised 17.4% the prior week. It was the WLI's highest yearly growth rate reading since the week to May 28, 1971, when it stood at 20.5%.
"With WLI growth continuing to surge through late summer, a double dip back into recession in the fourth quarter is simply out of the question," said ECRI Managing Director Lakshman Achuthan, reinstating the group's recent warning to ignore negative analyst projections. Achuthan has recently projected that the recovery is moving at a stronger pace than any the United States has seen since the early 1980s.
Consumer Sentiment Improves in Late August - August consumer sentiment improved to 65.7 in late August from 63.2 in early August, but it did remain below July's 66.0 according to Reuters/University of Michigan. Economist estimated a reading of 64.0.
Spending Ticks Up, Income, Inflation Flat - According to the Commerce Department, July consumer spending increased by 0.2%. Also, personal incomes were unchanged in July as the stimulus effect wore off but wages rose to offset the decrease. The personal savings rate fell to 4.2% versus 4.5% in June since spending outpaced incomes. Inflation remained stable with the "core CPI" up 0.1%. Year over year, the CPI is down 0.8% (includes food and energy), while core prices are up 1.4% (excludes food and energy).
"With WLI growth continuing to surge through late summer, a double dip back into recession in the fourth quarter is simply out of the question," said ECRI Managing Director Lakshman Achuthan, reinstating the group's recent warning to ignore negative analyst projections. Achuthan has recently projected that the recovery is moving at a stronger pace than any the United States has seen since the early 1980s.
Consumer Sentiment Improves in Late August - August consumer sentiment improved to 65.7 in late August from 63.2 in early August, but it did remain below July's 66.0 according to Reuters/University of Michigan. Economist estimated a reading of 64.0.
Spending Ticks Up, Income, Inflation Flat - According to the Commerce Department, July consumer spending increased by 0.2%. Also, personal incomes were unchanged in July as the stimulus effect wore off but wages rose to offset the decrease. The personal savings rate fell to 4.2% versus 4.5% in June since spending outpaced incomes. Inflation remained stable with the "core CPI" up 0.1%. Year over year, the CPI is down 0.8% (includes food and energy), while core prices are up 1.4% (excludes food and energy).
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