On the bond side, the interest rate story is essentially unchanged: rates are still low and have trended downward over the last year. This again has been contrary to most ‘experts’ who have been expecting significant rate rises for more than half a decade now. 10-year U.S. government bonds are currently yielding 1.59%; 2.32% for a 30-year bond.
- Economic growth for the second quarter has been revised upwards from 1.1% to 1.4%, due to higher corporate spending in general and increasing corporate investments in research and development specifically.
- Average hourly earnings for American workers have risen 2.4% so far this year.
- Consumer spending, which makes up more than two-thirds of U.S. economic activity, rose a robust 4.3% for the quarter, perhaps partly due to higher take-home wages this year.
- America’s trade deficit shrank in August.