Saturday, February 20, 2016
Economy: Goldilocks Is Still Here
- US retail sales (ex gasoline) are growing 4.5% year-over-year -and accelerating (Chart below)
- average hourly wages are advancing 2.5% year-over-year - and accelerating
- unemployment rate is at 4.9%
- weekly jobless claims are on a downtrend and close to a 40 years low
- industrial production & manufacturing are growing (reuters)
- core inflation rate is 2.2% (calculatedrisk). Deflation?
There are lot of tailwinds: Gasoline, heating oil and natural gas (heating costs) all cost about halve of 2014.
- interest rates are very low
Goldilocks is still here.