Weekly Economic & Financial Commentary

The production side of the economy remains red hot, with industrial production rising at a 9.3 percent pace over the past three months. By contrast, final demand appears to be cooling a bit, with retail sales tumbling 1.2 percent in May.
Weekly Economic & Financial Commentary
U.S. Review
Production Seems to Be Running Ahead of Demand

The production side of the economy remains red hot, with industrial production rising at a 9.3 percent pace over the past three months. By contrast, final demand appears to be cooling a bit, with retail sales tumbling 1.2 percent in May.

The weakness in final demand and falling energy prices have kept consumer prices well contained. The CPI fell 0.2 percent in May and is down at a 0.7 percent annual rate over the past three months.
Industrial ProductionIndex, 2002=10050607080901001101208789919395979901030507095060708090100110120Industrial Production: May @ 103.5
Global Review
U.K. Economy Probably Accelerated in Q2

Following a very deep recession the British economy is expanding again, although the pace of recovery has been slow. That said, available monthly indicators suggest that real GDP growth strengthened in the second quarter.

Unfortunately, economic growth likely will slow again later this year due, at least in part, to fiscal tightening. Budget cuts have already been announced for the current fiscal year, and Chancellor Osborne is expected to announce further measures on June 22.

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