Friday, May 27, 2011
Wells Fargo’s Weekly Economic & Financial Commentary – May 27, 2011
- GDP grew at a 1.8 percent pace during the first quarter, as the positive contribution from inventory building was offset by lower-than-expected consumer spending data.
- Personal income grew 0.4 percent in April, but purchasing power eroded due to higher food and energy prices.
. Real disposable income remained flat for the second month in a row, while real personal spending rose just 0.1 percent for the month.
- The 3.6 percent decline in durable goods orders indicates that production will need to slow over the next month to match the pace of lower demand.
. Excluding the volatile transportation component, durable goods orders fell 1.5 percent, compared to expectations for 0.5 percent growth.