The Economy

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Last week, on the “good news” side of the ledger, U.S. weekly jobless claims come in at their lowest reading since January 2008.  German factory orders for March grow 2.2% versus expectations of a decline of 0.5%.  And, Bank of Korea joins the party, cuts key interest rate to 2.5% from 2.75%.  Housing remains a strong positive force as Mortgage Bankers Association mortgage applications climbed 7% week-over-week, rising for the 5th consecutive week.


 


But on the negative side, April retail sales gained 2.8% v expectations of +3.5% and Wholesale sales came in weak, falling 1.6% month-over-month versus expectations of 0.1% growth.  (Source:  Big Picture).


 

My interpretation of these reports is the U.S. and global economies continue to grow at a slow pace – much slower than normal for this stage of the economic cycle.  As a result, the worlds’ central banks feel compelled to pump money into the system to stimulate growth.  Only time will judge the success of this strategy.

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