Key Economic Indicators – May 29, 2017

  • Real GDP increased at an annual rate of 1.2% in the first quarter of 2017, according to the “second” estimate by the Bureau of Economic Analysis. In the fourth quarter of 2016, real GDP increased 2.1%. In the advance estimate, released a month ago, the increase in real GDP was 0.7% for the first quarter of 2017.
  • Real final sales of domestic product (GDP less change in private inventories) increased 2.2% in the first quarter, in contrast to an increase of 1.1% in the final quarter of 2016.
  • Real gross domestic income (GDI) increased 0.9% in the first quarter of 2017, compared with a decrease of 1.4% in the final quarter of 2016.
  • The average of real GDP and real GDI, a supplemental measure of U.S. economic activity that equally weights GDP and GDI, increased 1.0% in the first quarter, compared with an increase of 0.3% in the fourth quarter of 2016.
  • The price index for gross domestic purchases increased 2.6% in the first quarter of 2017, compared with an increase of 2.0% in the previous quarter.
  • The personal consumption expenditures (PCE) price index increased 2.4%, compared with an increase of 2.0%. Excluding food and energy prices, the PCE price index increased 2.1%, compared with an increase of 1.3%.
  • Corporate profits from current production decreased $40.3 billion in the first quarter of 2017, after an increase of $11.2 billion in the fourth quarter of 2016. Profits of domestic financial corporations decreased $28.4 billion in the first quarter, in contrast to an increase of $26.5 billion in the fourth quarter. Profits of domestic nonfinancial corporations decreased $18.4 billion, compared with a decrease of $60.4 billion. The rest-of-the-world component of profits increased $6.5 billion, compared with an increase of $45.1 billion.
  • New orders for manufactured durable goods decreased 0.7% in April, while shipments decreased 0.3%. Excluding transportation, new orders decreased 0.4%, while shipments decreased 0.2%. Year-to-date new orders were up 2.2% from the same period a year ago, while shipments were up 1.6%.
  • Retail inventories for April were down 0.3% from the previous month, but were up 3.0% from April 2016, according to the U.S. Census Bureau.
  • Wholesale inventories for April were down 0.3% from the previous month, but were up 1.8% from April 2016.
  • The international trade deficit in goods was $67.6 billion in April, up $2.5 billion from $65.1 billion in March, according to the U.S. Census Bureau.  Exports of goods for April were $125.9 billion, $1.1 billion less than March exports. Imports of goods for April were $193.4 billion, $1.4 billion more than March imports.
  • April existing home sales decreased 2.3% to an annualized rate of 5,570 thousand units, according to the National Association of Realtors. The April figure was 1.6% above the April 2016 figure. There were 1,930 thousand homes for sale at the end of the month. This represents a supply of 4.2 months at the current sales rate, compared to 4.6 in April of 2016. The median sales price of existing homes sold was $244.8 thousand, 6.0% above April 2016.
  • April new home sales decreased 11.4% to an annualized rate of 569 thousand units. The April figure was 0.5% above the April 2016 figure. The median sales price of new houses sold was $309.2 thousand, 3.8% below April 2016.
  • U.S. house prices increased 0.6% in March, following a 0.8% increase in the previous month, according to the Federal Housing Finance Agency’s (FHFA). For the 12 months ending in March, U.S. house prices rose 6.2%.
  • The results of Freddie Mac’s Primary Mortgage Market Survey showed average fixed mortgage rates moving lower. 30-year fixed-rate mortgage averaged 3.95% for the week ending May 25, down from last week when it averaged 4.02%. A year ago at this time, the 30-year rate was 3.64%. 15-year fixed-rate mortgage averaged 3.19%, down from last week when it averaged 3.27%. A year ago at this time, the 15-year rate was 2.89%.
  • Mortgage applications increased 4.4% from a week earlier, according to data from Mortgage Bankers Association’s (MBA) Weekly Applications Survey for the week ending May 19th.
  • The advance figure for initial claims for unemployment insurance increased a thousand to 234 thousand in the week ending May 20. The 4-week moving average was 235.25 thousand, a decrease of 5.75 thousand from the previous week’s revised average. This is the lowest level for this average since April 14, 1973 when it was 232.75 thousand. The advance number for seasonally adjusted insured unemployment (ongoing) during the week ending May 13 was 1,923 thousand, an increase of 24 thousand from the previous week’s revised level. The 4-week moving average was 1,930.25 thousand, a decrease of 16 thousand from the previous week’s revised average. This is the lowest level for this average since January 19, 1974 when it was 1,920.75 thousand.
  • The Thomson Reuters/University of Michigan Index of Consumer Sentiment for May was little changed from April. The Index was 97.1 in May, compared with 97.0 in April and 94.7 in May of last year.
  • The Chicago FED National Activity Index (NAI) increased to 0.49 in April, from 0.07 in March. The Index was negative 0.09 in April of 2016. The index’s 3-month moving average increased to 0.23 in April from 0.0 in March.
  • The Chicago Fed’s National Financial Conditions Index (NFCI) remained at negative 0.82 in the week ending May 19. The Index was negative 0.68 a year ago. the adjusted index (ANFCI), which removes the variation in the individual indicators attributable to economic activity and inflation, edged up to negative 0.44, from negative 0.49.
  • Manufacturers in the Fifth District were somewhat less upbeat in May than in the prior three months, according to the latest survey by the Federal Reserve Bank of Richmond. The manufacturing index decreased to 1 in May, from 20 in April and 22 in March. On the other hand, activity in the service sector improved further in May, with the revenues index reaching 34 – its highest mark since 1997.
  • Tenth District manufacturing activity continued to expand at a moderate pace in May, and expectations for future activity increased strongly, according to the Federal Reserve Bank of Kansas City.  The composite index was 8 in May, up from 7 in April. Price indexes were mixed, but recorded little change overall.

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