This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Economy Appears To Gain Strength After Flat First Quarter

WASHINGTON, May 21, 2014 /PRNewswire/ -- After stalling out in the first quarter of the year, recent indicators suggest the economy is poised for a pick-up in growth in the second quarter of 2014, according to Fannie Mae's (OTC Bulletin Board: FNMA) Economic & Strategic Research Group. March data revealed positive consumer spending in both goods and services, helping set up a trajectory for more solid spending growth in the current quarter. April auto sales marked the second consecutive month of at least 16 million annualized units – the first time since 2007. The outlook for business capital spending also has improved, with core capital goods orders jumping 3.5 percent in March to the highest nominal reading on record. Additionally, the upbeat April jobs report showed a pickup in hiring at the fastest pace in more than two years, further signaling that the economy is gathering speed.

"We have downgraded our May forecast slightly from April following a very weak first quarter, but we anticipate economic growth to gain momentum in the second quarter and remain firm throughout the rest of this year," said Fannie Mae Chief Economist Doug Duncan. "Reduced drag both from government spending and fiscal policy uncertainty as well as improving financial and labor market conditions should contribute to a rebound, but the sizable down draft from the first quarter likely will keep full-year growth subdued. Overall, we expect economic growth to accelerate to just over 3.0 percent on an annualized basis in the current quarter, and to come in at 2.4 percent for all of 2014."

"The housing picture remains more worrisome, with existing home sales, new home sales, housing starts, and multifamily housing all experiencing year-over-year declines despite improving consumer attitudes," said Duncan. "However, we anticipate a modest uptick in housing activity as the spring and summer selling and building seasons get under way. We believe this year will likely be a bump in the long-term road back toward normal levels, which we continue to expect sometime in late 2016."

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,986.95 +274.29 1.55%
S&P 500 2,083.87 +22.85 1.11%
NASDAQ 4,934.1850 +42.9660 0.88%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs