Economic snapshot: GDP mixed with auto sales, jobless claims provided mixed news
Though some news, such as the decrease in unemployment claims and an increase in auto sales, was positive this week, a drop in the GDP and only a slight increase in consumer spending disappointed economists.
GPA down in Q1
Gross domestic product decreased at a 2.9 percent annualized rate in the first quarter, the worst reading since Q1 2009, Bloomberg reported. The drop was more than was forecast.
Consumer spending up only slightly
Though consumer spending was up 0.2 percent in May, the increase was less of a bump than economists were expecting to see, the Associated Press reported. Income was up 0.4 percent in May.
Auto sales rise in May
Though there have been some negatives in economic news this week, U.S. auto sales were up 11 percent in May, according to The Wall Street Journal. A number of auto manufacturers reported double-digit increases over May 2013, with Volkswagen’s Audi brand up 26 percent, and Nissan up 19 percent. Toyota, Chrysler and BMW were each up 17 percent, while General Motors grew sales 13 percent, and Ford was up 3 percent.
Jobless claims decreased by 2,000 for the week ending June 21. The 312,000 claims made represent the lowest week in the month so far. Claims for the same week in 2013 totaled 345,000.