Rose colored glasses

It’s all coming up roses as the economy continues to show growth.  It doesn’t get much better than a growing economy and stable inflation.  Last weekthe second quarter GDP was released at 4.1%, a strong increase over first quarter GDP at 2.2%.  The key inflation measure, Core PCE reported this week at 1.9%, slightly lower than the 2.0% expectations and within the goal post set by the Fed. But the Fed warning the markets this week they are still on track to raise rates in September. Consumer confidence reported this week at the second best levels of the year.  Today ISM manufacturing data is still showing expansion in the economy, but at a slower pace than expected.    

 Unemployment at 3.9%, 157,000 jobs added in July.  Sources say would have been more, but still lacking candidates with the right skills.  No excuse to be in a job you don’t like these days.  Average hourly wages up 2.7% year over year.  As expected wages increasing, but not by much and just barley higher than inflation.

 Housing news: June New home sales declined 5.3% and supply increased to 5.7 months.  Existing home sales declined .6% and supply increased to 4.3%.  We are hitting a wall in housing where affordability is starting to impact demand just a bit. 

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