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March 28, 2013

GDP Pathetic, Initial Jobless up, Corporate Profits up.

March 28, 2013

GDP Pathetic, Initial Jobless up, Corporate Profits up.

GDP (4thQ2012)

– 4thQ2012 GDP was +0.4% – GPD Deflator for 4thQ2012 was +1.0% annualized.

While this is an improvement from the two previous readings, the fact is that GDP growth is pathetic.

Initial Jobless Claims (week ended 3/23/2013)

– New Claims 357,000 (adjusted.) This is +16,000 from the revised previous week’s 341,000.

– 4-week Moving Average 343,000

– Unadjusted Claims were 315,657 an increase of 14,706 from the previous week.

– Total number of people claiming unemployment benefits for the week ended 3/9 was 5,455,757 an increase of 86,750 from the previous week.

Corporate Profits (4thQ2012)

– After-tax profits Year/Year were +13.3%. The “why aren’t large corporate profits translating into investments and more jobs” debate will continue. I will offer the idea that something major must be done with our tax code. Simpson-Bowles addressed this extensively. Congress and the Administration have continued to ignore their suggestions preferring partisan bickering.

Chicago PMI (March 2013)

– Business Barometer Index was 52.4 down from 56.8. Growth continues but at a slower pace.

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