Data Driven or Driven Data
While there are a great many types of economic data releases, issued by a myriad of public and private sources, two reports have risen above the rest in importance: the Quarterly GDP estimates issued by the Bureau of Economic Analysis, and the monthly jobs report issued by the Bureau of Labor Statistics. And those two reports have been recently coming up roses. The 3rd quarter GDP growth report, released on November 25th, revised growth upwards to an annualized rate of 3.9%, and the November Jobs report, released on December 5th, showed the creation of 321,000 new jobs in November, the highest monthly total in nearly three years. These reports have solidified the views of the mass of analysts that the U.S. economy is currently firing on all cylinders.
November 26 – Personal income rose by only .2% in October, half of the .4% expected by economists.Personal spending also increased by .2%, but this was 33% less than the .3% consensus expectations.
December 5 – Consumer credit rose $13.2 billion in October but the increase was far less than the $16.8 billion expected by a Bloomberg survey of economists (September’s rate that had also come in well below the consensus estimate was revised even lower). The gain was largely centered on a $12.3 billion increase in non-revolving credit that includes auto financing and the government’s acquisition of student loans from private lenders. Revolving credit rose only $0.9 billion, down from an already disappointing $1.4 billion in September.
Best Selling author Peter Schiff is the CEO and Chief Global Strategist of Euro Pacific Capital. His podcasts are available on The Peter Schiff Channel on Youtube