Back to top

Real Time Insight


Revised GDP growth matched consensus, more or less. Real U.S. GDP expanded at a +2.4% annual pace in Q4-13 instead of +3.2% as originally reported.  
 
Consumers did not spend quite as much, the refreshed government data said. Consumer spending growth was lowered to +2.6% from +3.3%.  U.S. consumers spent less than initially calculated on big-ticket items such as autos, appliances, and electronics.
 
Reduced estimates for U.S. export growth, and fall in inventory spending, and a sharper decline in government spending also contributed to the downward revision.

  • Exports rose +9.4% instead of +11.4%,
  • Inventories climbed $117.4 billion and not $127.2 billion.
  • Government spending fell a stiffer -5.6% instead of -4.9%.  State and local governments actually cut outlays instead of increasing them. 

Folks, that’s a pure “muddle-through” rate of demand expansion. Exclude inventories, and final sales of U.S. goods and services were trimmed to +2.3% from +2.8%.   
 
One major positive showed its face. Company spending on equipment - a key signal of improved business conditions - was revised up to show a +10.6% gain versus +6.9%.
 
Inflation as measured by the PCE index was little changed, rising at a +1% annual pace or by +1.3% excluding food and energy. 
 
My RTI question:  Can Business Spending Relieve the Consumer?

Zacks Releases Their 7 Best Stocks for August, 2014

These 7 were hand-picked from the list of 220 Zacks Rank #1 Strong Buys with earnings estimate revisions that are sweeping upward. Their stock prices are expected to rise sooner than the others.

Today, this Special Report is available to new Zacks.com visitors free of charge.

Close This Panel X

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%