It’s the last day of the trading week and that means it’s time to review the latest economic data and identify which pockets of the economy are heating up and which are slowing down. Don’t worry about catching every headline and every report—I recap all of the most important news impacting your wealth right here every week. Let’s take a look at this week’s big headlines:
On Tuesday, the Federal Reserve reported that consumer credit in the U.S. expanded by $19.6 billion in May, nearly in line with economist’s expectations for $20 billion. The increase follows April’s $26.1 billion surge. The increase was due to growth in non-revolving credit like car and student loads, which jumped $17.8 billion in May. Revolving credit, or credit card debt, grew by $1.8 billion. As expected, credit card debt is slowing increasing as consumer spending picks up here in the U.S. Overall, this is a bullish report and bodes well for continued retail sales growth.
More Workers At Work
Last week, jobless claims fell by 11,000 to a seasonally adjusted 304,000. That ties for the third-lowest reading in 2014, and was nicely lower than economist expectations for 319,000 new claims. So the four-week average dipped to 311,500. Last week’s claims, which remain unchanged at 315,000, coupled with this week’s 304,000, is a positive sign that the labor market is continuing to improve.
Flying Off the Shelves
In May, wholesalers increased their stockpiles by 0.5%, while sales increased 0.7%. At the current sales pace, the inventory-to-sales ratio remains unchanged at 1.18 months. Meanwhile, April inventories rose slightly to a revised 1.0%, and sales increased to a revised 1.3%. This was a solid report, as it shows that businesses are continuing to restock their shelves. And ultimately, that will continue to support stronger GDP growth this year.
Have a great weekend,