Weekly Market Update: April 23, 2018
Lessons From Last Week
March retail sales rebounded, supporting predictions that economic growth will be as robust in Q2 as it was soft in Q1.
Housing construction has been booming this winter, but a slump in home improvement outlays and real estate sales commissions—about half of residential activity in the GDP accounts—took some of the wind out of Q1 residential investment.
Jobless claims remain low and steady.
What to Expect This Week
First-quarter reports are expected to show slow gains in labor costs (2.75 percent year-over-year).
The initial estimate of Q1 real GDP growth is expected to be close to 2 percent, slower than last year’s 2.6 percent expansion over the four quarters of the year. A regular seasonal distortion (residual seasonality) that tends to depress GDP growth in the first quarter of every year should come to mind, given the solid trends in jobless claims and industrial activity.
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