For the past couple of years the economic indicators are one step forward and one step back. Whether it is a revision of US government statistics or indicators going in opposite directions, there is no clear indication of where the economy is headed. Yesterday’s third-quarter economic growth rate was 2.9%, a cause of cheer in this economy but lackluster compared to other years. Of the 2.9%, 1.47% came from consumer spending while business spending remains depressed.
The higher cost of raw materials has spurred inflation talk, something the Fed really wants, but there are real questions whether this could be sustained as more supplies hit the market.
Finally, the news from the oil patch is BAD. ExxonMobile is thinking about writing down some of its assets, especially in Canada, and many oil companies have dramatically cut their exploration and capex.
All in all, the news is a solid C in my book.