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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
US OUTLOOK/OPINION
Today's national accounts release for Q1 provided the first look at Gross Domestic Income for the quarter. Wells Fargo saw today's reading as in stark contrast to the contractionary -1.5% Q/Q ann. GDP figure - "in short, the economy continues to plow ahead".
- In theory, GDP and GDI should be identical, but rarely are due to errors and omissions, notes Wells Fargo. So in contrast to GDP, real GDI grew by 2.1%. "This growth... is more in line with the 'core' parts of the spending side. Specifically, real personal consumption expenditures grew at an annualized rate of 3.1% in Q1 while fixed investment spending rose 6.8%. In short, the economy continues to plow ahead, despite the modest contraction in real GDP growth in the first quarter."
- Wells Fargo also notes that while we await a detailed industry data breakdown in the next quarterly accounts on Jun 29, the high-level numbers "suggest profit growth was soft pretty much across the board". "With weaker demand unlikely to blame, we expect higher costs weighed on profitability as increased cost pressure is one of the largest challenges for firms today."
Source: Wells Fargo
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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