GDP number falls short, Triangle job picture improves
Posted April 27, 2012
The 1st quarter GDP number came in much lower than expected at 2.2% this morning, providing some speculative fuel that in fact, there may be further need for monetary easing as we head towards the summer. While things seem to be improving incrementally here in US, we are still a far cry from a healthy economy, with unemployment, rising commodity prices and less than full strength economic conditions providing headwinds to a full recovery.
The University of Michigan’s Consumer Sentiment today reported a slight rise in Consumer Sentiment for April. Even with the slight increase in number however it seems that most consumers are still cautiously optimistic about their current and future financial situations, and are still concerned over gas prices and other commodity costs.
Reaction to today’s economic news has been positive for Treasury Yields and Mortgage Rates, as the 10 Year Yield settled at 1.93 by Friday’s close, and mortgage rates have had slight downward pressure on them throughout the week.
Good news on the jobs front here in the Triangle, as unemployment has dropped again, this time to below 8%, ending up at a reading of 7.8% in March. Not surprisingly, our solid base of economic fundamentals and diverse industries continues to be a formula leader for success here in North Carolina.
Have a great weekend everyone!