Bond and currency markets ignored this morning’s release of income, spending and inflation data. The numbers came in marginally stronger than expected, with personal spending for March revised upwards to +0.3% from the initial report of 0.0%. The +0.4% April number was the same as the consensus estimate, and suggests a modest pickup of consumer activity during the second quarter.
Markets were unimpressed. The 30-year Treasury bond was up a quarter of a point before the announcement and remained exactly where it was after the announcement. US stock futures are marginally in the red.
The Atlanta Federal Reserve’s GDP tracking model shows 2nd quarter GDP growth at a 3.7% annual rate, down from a May 16 estimate of 4.1%. The lower estimate came after Tuesday’s housing related releases from the U.S. Census Bureau and Wednesday’s existing-home sales release from the National Association of Realtors indicated lower residential investment.