US Growth OK, Don't Sell Out

US Growth OK, Don't Sell Out

August 12, 2005

Today’s numbers disappointed some people. June trade deficit +6.1% at $58.8 billion, about 5.7% of GDP. The bitg bulge in the number is rising imports since the US recovery picked up steam, although oil imports are a factor too. I worry more about exporting capital, especially technology capital, as the US share of global communications equipment has fallen by half, from 40% to 20% over the past 5 years.

Other numbers: July Import prices +1.1% (oil prices), August Michigan consumer confidence index down, and yesterday’s advance retail sales report (0.3% ex autos) was a little weaker than people wanted to see.

Bunk. Growth is very strong. Use this passing cloud of worries to buy other people’s stock at better prices.

JR

John Rutledge

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