GDPNow

US Economy: Another Mostly Pretty Picture

Jan 16, 2025 4 min read

Today's batch of December economic indicators in the US has mostly eased any downside concerns about the labor market, consumers, and the economy overall. The Atlanta Fed's GDPNow tracking model is now showing Q4-2024 real GDP growth of 3.0% (saar), driven by a 3.7% increase in consumer spending on goods (chart). The latter was revised up from 3.3% after retail sales was released

Ed Yardeni
Eric Wallerstein

US Economy Is Hot, Hot, Hot

Oct 17, 2024 3 min read

Today, the Atlanta Fed's GDPNow tracking model raised Q3's real GDP growth rate from 3.2% to 3.4% (saar) following a roaring September retail sales report (chart). Real consumer spending was revised up from 3.3% to 3.6%! Jobless claims fell despite worker strikes and hurricanes. Manufacturing also held up well notwithstanding Boeing layoffs and bad weather. Today's data further confirm our

Ed Yardeni
Eric Wallerstein

Larry & Ray’s Not-So Excellent Adventure in China is Over

Oct 8, 2024 3 min read paid

Both Blackrock's Larry Fink and Bridgewater's Ray Dalio have been notable and vocal China bulls for several years. It seems they've both joined our camp in recent days, issuing caution against investing in China as it supports Russia's war against Ukraine and becomes less favorable to capitalism. They should have placed their bets on stock markets in democracies such as the United

Ed Yardeni
Eric Wallerstein

Fed Playing With An Economy On Fire?

Sep 17, 2024 2 min read paid

Today, the Atlanta Fed's GDPNow tracking model raised Q3's real GDP growth rate to 3.0% (saar) from 2.5% following the release of solid retail sales and industrial production reports for August (chart). Leading the way was an upward revision in real consumer spending growth to a whopping 3.7% from 3.5%. The increase in real spending on capital equipment was raised to 11.

Ed Yardeni
Eric Wallerstein

Remaining Zen About The Yen

Aug 6, 2024 3 min read paid

BREAKING NEWS: Deputy BOJ Governor Uchida said that the central bank won't raise interest rates when markets are unstable. His dovish remark gave a broad lift to risk-on appetite in Asia. We wrote the following before this news came out.

Ed Yardeni
Eric Wallerstein

Fed Put Jolts Stocks To New Record High

Jul 2, 2024 2 min read paid

The S&P 500 jumped to a new record high of 5509 today on better-than-expected Tesla vehicle deliveries. In addition, today’s JOLTS report showed more job openings. Nevertheless, two Fed officials suggested today that the Fed Put is back because they are worried that the Fed might cause job losses if monetary policy stays too tight for too long. Their dovish comments reinforced expectations that the Fed will

Ed Yardeni
Eric Wallerstein

The Bond Market's Lines In The Sand

Aug 28, 2023 1 min read paid

Today, the stock market performed better because the bond market performed better. The 10-year US Treasury bond yield remained below 4.25%, which was last year's peak (chart). A few days ago it rose slightly above that rate but didn't follow through to the upside. The same can be said for the 10-year TIPS yield, which backed off from 2.00%. Breakouts above these resistance levels

Ed Yardeni

S&P 500: Smooth Sailing to Another 2023 High

Jun 1, 2023 2 min read paid

Hooray! The US government won't default on its debts. There are plenty of jobs. Unit-labor-cost inflation is moderating. The banking crisis is abating. The recession is still a no-show. Earnings were better than expected during Q1 and are probably bottoming during the current quarter. The FOMC likely will pause its rate hiking for at least one meeting. AI will boost productivity if it doesn't kill us.

Ed Yardeni

Rollercoaster Ride in the Bond Market

Apr 10, 2023 2 min read paid

At the start of this year, the widespread economic consensus was that a hard landing is coming. The consensus changed dramatically during February, when January’s stronger-than-expected economic indicators suggested that a no-landing scenario was more likely. Last week’s batch of economic indicators revived concerns about a hard landing. We watched this rollercoaster ride with our feet firmly planted on the ground. The outlook still looks like a soft

Ed Yardeni

A Bowl of Mixed Nuts

Jan 4, 2023 2 min read paid

Today's batch of economic indicators was mixed, showing that the manufacturing economy remains weak, while the labor market remains strong. In addition, inflationary pressures continue to ebb in the goods sector. Yesterday, the Atlanta Fed's GDPNow tracking model's latest estimate was that real GDP rose 3.9% (saar) during Q4, up from 3.2% during Q3. Here's more:

Ed Yardeni

The No-Landing Scenario

Dec 23, 2022 2 min read paid

Ed Yardeni

Consumers Aren't In the Mood for a Recession

Nov 16, 2022 1 min read paid

The Atlanta Fed's GDPNow model estimate for real GDP growth during Q4 is 4.4% today, up from 4.0% on November 9. After this morning’s retail sales report showed a solid 1.3% October gain, the nowcast of Q4 real personal consumption expenditures growth increased from 4.2% to 4.8%.

Ed Yardeni

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