Europe Steals the Spotlight as U.S. Quietly Recovers
Absent a complete financial collapse, European slowing should have next to no impact on the U.S. economy.
The economic news this week out of both the U.S. and Europe remained better than expected. In the U.S., the all-important price indexes were flat, retail sales on a year-over-basis remained steady, and the housing sector showed signs of life. Furthermore, initial unemployment claims remained under control, and data showed the manufacturing sector was surprisingly robust in April.
Even Europe managed to eke out a little GDP growth in the first quarter after contraction in the fourth quarter, evading the technical indication of a recession, which is back-to-back declines in GDP growth. But with bank runs in Greece, downgrades of Spanish banks, and rumors of Greece's withdrawal from the eurozone, none of the good news made much of a difference.
Robert Johnson, CFA does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.