Daily Archives: June 28, 2011

Surprisingly, May Was A Decent Month For Economic Activity Overall

The broad trend in U.S. economic data held up surprisingly well in May, considering the downgrade in expectations lately. The Capital Spectator’s Composite Economic Index (an equally weighted mix of 18 indicators) gained 0.9% last month, reversing April’s slight retreat. The portion of leading indicators in that mix fared even better, jumping 1.8% in May. Overall, May was a respectable month for growth, despite various signs of trouble in some isolated areas. We shouldn’t minimize the warnings signs. In particular, the sharp fall in job growth is disturbing, although it’s still unclear if it has legs. Meantime, the overall picture is still one of forward momentum. That’s encouraging because it offers some hope that the economy could withstand a slowdown in growth in the labor market, at least for a short period.

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