· Real GDP increased at an annual rate of 4.2% in the second quarter of 2018, according to the “second” estimate by the Bureau of Economic Analysis. In the first quarter, real GDP increased 2.2%. In the advance estimate, released a month ago, the increase in real GDP was 4.1% for the second quarter of 2018.
· Real final sales of domestic product (GDP less change in private inventories) increased 5.3% in the second quarter, in contrast to an increase of 1.9% in the first quarter.
· Real gross domestic income (GDI) increased 1.8% in the second quarter of 2018, compared with an increase of 3.9% in the first quarter.
· The average of real GDP and real GDI, a supplemental measure of U.S. economic activity that equally weights GDP and GDI, increased 3.0% in the second quarter, compared with an increase of 3.1% in the previous quarter.
· The price index for gross domestic purchases increased 2.3% in the second quarter of 2018, compared with an increase of 2.5% in the previous quarter.
· The personal consumption expenditures (PCE) price index increased 1.9% in the second quarter, compared with an increase of 2.5% in the previous quarter. Excluding food and energy prices, the PCE price index increased 2.0%, compared with an increase of 2.2%.
· Corporate profits from current production increased $72.4 billion in the second quarter, after an increase of $2672 billion in the previous quarter. Profits of domestic financial corporations increased $16.8 billion in the second quarter, in contrast to a decrease of $9.3 billion in the previous quarter. Profits of domestic nonfinancial corporations increased $63.6 billion, compared with an increase of $32.3 billion in the previous quarter. The rest-of-the-world component of profits decreased $8.0 billion, compared with an increase of $3.7 billion in the previous quarter.
· Personal income increased 0.3% in July, and personal consumption expenditures increased 0.4%. The price index for personal consumption expenditures increased 0.1% in July, while the core index increased 0.2%. The headline index was up 2.3%, and the core index was up 2.0% from July 2017.
· Retail inventories for July were up 0.4% from the previous month, and were up 2.3% from July 2017, according to the U.S. Census Bureau.
· Wholesale inventories for July were up 0.7% from the previous month, and were up 5.2% from a year ago.
· The international trade deficit in goods was $72.2 billion in July, up $4.3 billion from $67.9 billion in June, according to the U.S. Census Bureau. Exports of goods for July were $140.0 billion, $2.5 billion less than June exports. Imports of goods for July were $212.2 billion, $1.8 billion more than June imports.
· The advance figure for initial claims for unemployment insurance increased 3 thousand to 213 thousand in the week ending August 25. The 4-week moving average was 212.25 thousand, a decrease of 1.5 thousand from the previous week’s unrevised average. The advance number for seasonally adjusted insured unemployment (ongoing) during the week ending August 18 was 1,708 thousand, a decrease of 20 thousand from the previous week’s revised level. The 4-week moving average was 1,731.25 thousand, a decrease of 4.5 thousand from the previous week’s average.
· The results of Freddie Mac’s Primary Mortgage Market Survey showed that average fixed mortgage rates were marginally higher. The 30-year fixed mortgage rate averaged 4.52% for the week ending August 30, up from last week when it averaged 4.51%. A year ago at this time, the 30-year fixed mortgage rate was 3.82%. The 15-year fixed mortgage rate averaged 3.97% for the week ending August 30, down from the previous week when it averaged 3.98%. A year ago at this time, the 15-year fixed mortgage rate was 3.12%.
· Mortgage applications decreased 1.7% from a week earlier, according to data from Mortgage Bankers Association’s (MBA) Weekly Applications Survey for the week ending August 24th.
· The Thomson Reuters/University of Michigan Index of Consumer Sentiment decreased to 96.2 in August, from 97.9 in July. The Index was 96.8 a year ago. The Current Conditions Index decreased from 114.4 in July to 110.3 in August, while the Index of Consumer Expectations edged down to 87.1 in August, from 87.3 in July.
· The Conference Board’s consumer confidence index, which had increased in July, improved further in August. The Index now stands at 133.4 (1985=100), up from 127.8 in July. The Present Situation Index increased from 166.1 to 172.2, while the Expectations Index rose from 102.4 last month to 107.6.