Economic Statistics for 29 Apr 15
The initial GDP estimate for the 1st Quarter of 2015 was for 0.2% annualized growth, down from an unrevised 2.2% in the 4th Quarter of 2014. The GDP Price index fell -0.1% for the quarter. Exports were a drag on GDP as a strong dollar is inhibiting foreign demand. Business spending (nonresidential fixed investment) contracted in the quarter, while personal spending (personal consumption expenditures) slowed abruptly. Lower demand also caused an unwanted upswing in inventories.
The National Association of Realtors’ Pending Home Sales Index rose 1.1% in March to 108.6.
The MBA reports that mortgage applications fell -2.3% last week, with purchases unchanged, but refis down -4.0%.
The Federal Open Markets Committee left interest rates unchanged today, with a Fed Funds target rate of 0%-0.25%. The FOMC’s statement says growth has “slowed” since the committee last met in March, but view the slowing as temporary, saying that economic activity will expand at a “moderate” pace.