Consumer Spending Bounced Back In March
After declining in both January and February, consumer spending bounced back solidly in March, rising 0.4 percent. Personal income rose slightly less, climbing 0.3 percent, causing the saving ratio to slip back to 3.1 percent. Wells Fargo
Excerpts from a Wall Street Journal editorial (Business Carries the Economy) in the weekend edition:
US economic growth dipped from its 2017 pace in the first quarter of 2018, expanding by 2.3% in the Commerce Departments initial estimate released on Friday. But the report’s internal numbers are stronger than the top line and show that better economic policies are driving business investment.
Growth slowed less than most forecasters expected and beat the first quarters of 2016 and 2017. First quarter GDP has been an anomaly in recent years, showing sharply lower figures than in the rest of the year.
Liberals reflexively say this means tax reform is failing, but it is far too early to tell and some of the underlying data suggest that it is working as expected. Business investment carried the load in the first quarter and most of that was non-residential investment. That means that housing isn’t leading the expansion as it so often was in the years before the financial panic…Barack Obama’s anti-business policies stifled investment, and deregulation and tax reform seem to be liberating it. This should pay off in future quarters as capital spending increases, which should raise productivity and wages over time.
Data also show that much of the personal tax cuts are being saved, which alarms certain economists but should not. The personal saving rate had fallen to 2.4% in December, which is unsustainable. It bounced back to 3.4% in February, which is still low by historical standards but should allow consumers to make a normal contribution to GDP in coming quarters, especially as wages rise in a tight labor market.
One impediment to faster growth is the worker shortage that spans the economy…higher wages should draw workers off the sidelines but more LEGAL immigration is also needed.
Faster growth in the last five quarters is producing dividends for American households. Total nominal wage and salary payments grew by about $2900.00 per household. This is 38% higher than the last year of the Obama administration. The Bureau of Labor Statistics separately reported 1% growth in hourly compensation for private workers during the first quarter, which is the largest three month increase in at least twelve years.
All of this is good news for US workers and families, if our friends on the left can stand it.”
Midwest Economy Index (MEI) Moved Up in March
The Midwest Economy Index (MEI) moved up to +0.52 in March from +0.41 in February. Contributions to the March MEI from three of the four broad sectors of non-farm business activity and three of the five Seventh Federal Reserve District states increased from February.
Federal Reserve Bank of Dallas Texas Manufacturing Outlook Survey Reports Activity Rose Markedly in April
The Federal Reserve Bank of Dallas released its Texas Manufacturing Outlook Survey and reports Texas factory activity rose markedly in April after posting slower growth in March, according to business executives responding to the survey. The production index, a key measure of state manufacturing conditions, increased by 11 points to 25.3. Other indexes of manufacturing activity also rose sharply in April.
The MNI Chicago Business Barometer rose 0.2 points to 57.6 in April, up from 57.4 in March, snapping a three-month downward trend.
Business activity continued to rise at a solid pace in April, with growth in firms’ operations up for the first time this year, albeit marginally.
While output levels rose in April, driving the upward move in the Barometer, order book growth continued to weaken.
Supplier delivery times continued to lengthen, however, with evidence from multiple survey respondents that sourcing steel was particularly difficult.
Summit Steel Corporation Celebrates Thirty Three Years
Summit Steel Corporation reached its 33rd year of serving the metalworking industry on May 1. We are very proud of what we have accomplished for our vendors and customers and look for continued growth in future years as we consistently seek to improve and become a better cog in the supply chain.
Thank you all for your continued support…
ON Tuesday, President Trump decided to delay decisions about imposing steel and aluminum tariffs on the European Union and other US allies, until June 1, a senior administration official said.
I am traveling to South Africa this week and will not be composing a Weekly View until I return the week of May 21. Short View this week
Infrastructure X (Keystone & Dakota pipelines) Regulation Reform XX 1 in 2 out
Individual Tax Reform XX Entitlement Reform
Business Tax Reform XX Education Reform X
Healthcare Reform Veterans Administration Reform X
Rebuild our Military X Trade Reform X
Secure our Borders (The Wall) XX Lead the world from the front XX
Help for the poor XX Drain the swamp X as we speak
Peace through unmatchable strength Support Israel X
Destroy ISIS XX Extreme Vetting XX
Conservative Supreme Court nominees XX American Jobs XX
I will track these campaign promises and will check them off as each is accomplished adding those I have missed as they become apparent. This is quite an agenda and will be difficult to achieve all in one term but I believe the American people are behind him and know these things need to be done. Now, if he can get our legislators to support him instead of fighting him….
“MAKE AMERICA GREAT AGAIN”
Have a great weekend…. God bless America!
Buy American made products whenever you can, it’s good for you, good for your friends and neighbors and good for our country.
If you are hiring…try to hire a veteran…. they are loyal, disciplined, hardworking…and they deserve our support.
By the way, if you wish to comment on my rants or offer any other insights you may have, you are encouraged to email me.
TEDDY ROOSEVELT ON IMMIGRANTS IN AMERICA…1907
In the first place, we should insist that if the immigrant who comes here in good faith becomes an American and assimilates himself to us, he shall be treated on an exact equality with everyone else for it is an outrage to discriminate against any such man because of creed, or birthplace, or origin. But this is predicated upon the person’s becoming in every facet an American and nothing but an American. There can be no divided allegiance here. Any man who says he is an American, but something else also, isn’t an American at all. We have room for but one flag, the American flag…We have room for but one language here and that is the English language…and we have room for but one sole loyalty and that is a loyalty to the American people.”