Financial Advice Santa Rosa – THE ECONOMY HEADS FOR NORMAL

May 29th, 2014 → 6:10 pm @ // No Comments

A look at the fundamentals affirms the hunch.

The stock market may be up and down this year, but America’s economic recovery seems to be proceeding at a decent pace. Anyone who wants some evidence of that can find it in some key fundamental financial indicators.

Pessimists may counter: didn’t the economy grow just 0.1% in the first quarter? Indeed, that was the federal government’s initial estimate – but the initial estimate of quarterly GDP is twice revised, and often drastically so. Other key indicators point to a healthier economy, and some suggest that March and April were better than presumed.

Jobless claims reached a 7-year low this month. They decreased to pre-recession levels at last, with a seasonally-adjusted 297,000 applications received in the week of May 3-10, the fewest in any week since May 2007. Economists Reuters polled thought 320,000 claims would appear.

Hiring has picked up. April saw employers hire 288,000 people with gains in the manufacturing, construction, and professional/technical sectors. Even state and local governments hired.

From November to April, non-farm payrolls grew by an average of 203,000 jobs per month. From January through April, the gain averaged 214,000 jobs per month. That is the kind of steady growth that pulls an …Read More


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