US GDP growth fell short of expectations in last year’s fourth quarter, the government reports. National output increased 2.6% in the final three months of 2014 vs. the previous quarter (seasonally adjusted annual rate). The consensus forecast was looking for something better—a 3.2% rise, according to Econoday.com’s survey of economists.
Continue reading →

Housing remains a weak spot for the US economy, as suggested by yesterday’s news of a bigger-than-expected tumble in December’s Pending Home Sales Index, a forward-looking measure of demand. The National Association of Realtors (NAR) said that the benchmark slid 3.7% last month. The year-over-year trend looks better, with the latest data showing the fourth straight month of growth in annual terms. There’s also room for mild optimism due to the recent fall in mortgage rates and upbeat numbers in the labor market. But as we’ll see, the sluggish profile in housing of late reflects isn’t limited to pending sales data.
Continue reading →

● US jobless claims drop sharply to near 15-year low | Reuters
● US Consumer Comfort Index Rises to Highest Since July 2007 | Bloomberg
● US Pending Home Sales Unexpectedly Tumble 3.7% In December | RTT
● Eurozone Inflation Falls to Lowest Level Since 2009 | NY Times
● Eurozone Leading Index Higher For Second Straight Month | Conference Board
● Germany Retail Sales Growth Slows In Dec | Alliance/M-star