U.S. Economic News

June 29, 2017

U.S. Economic Indicators

The third estimate of Q1 GDP indicates that the U.S. economy expanded at an annualized rate of 1.4%, above the prior estimate. The revised reading reflects slight improvements to consumer spending and net exports, while inventories worsened somewhat.  BEA

Initial jobless claims increased 2,000 to 244,000 last week.  The four-week moving average fell 2,750 to 242,250. DOL Report

U.S. News

Ian Talley of the Wall Street Journal argues that although the U.S. economy is in its third-longest expansion, there are a number of key underlying weaknesses. Talley points to increasing levels of public debt, weak investment spending, and an aging workforce as structural headwinds for economic growth. WSJ

Robert Samuelson of the Washington Post writes that the usual relationship between wages and inflation has weakened, meaning that inflation may remain subdued despite an uptick in economic activity. Samuelson states that the breakdown of this relationship may be due to globalization and automation, which have eroded workers’ bargaining power for higher wages. WaPo