US numbers have proven to be a disappointment this Thursday. American GDP faced a calamitous decline in the first quarter of 2014 contracting at a pace of 1%. The GDP indicator for the first quarter of the year came in at -1.0% which was worse than the initial estimate of -0/6%. Despite the harsh preceding winter which took a subversive turn on the US economy in the first quarter, analysts are now predicting the economy to make a rebound in Quarter 2.
On a brighter note, the American consumer continues to remain optimistic which is vital for the recovery of the economy. As of April, the key indicator improved to 83.0 points accounting for a strong CB Consumer Confidence. This has been the third straight reading above the 80 point level. Moreover, the Standard & Poor’s/Case-Shiller house price index showed a dependable gain of 12.4% rising above the initial estimate of 11.9%.
Here in the north, the Canadian Dollar posted gains today as the trade range lies in the mid -1.08 in the North American session. The current account improved in April accounting for a narrowing deficit to total at $12.4 billion matching the forecast. Fortunately, current account correlates with the current demand as a lower deficit means foreigners now have purchased more Canadian goods and services. Corporate Profits have jumped 7.4% in the first quarter. This has been its strongest gain since Quarter 4 of 2011.
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