We think these figures point to tepid economic growth at best and note that the trajectory for growth has been down since before December 2011. That said, we also think that monetary statistics do not yet point towards a recession.
Monday, July 16, 2012
Update on Money Supply
The latest money supply figures were released by the Federal Reserve last Friday. Growth rates remain tepid at best, and continue to hover around stall speed. The 12-week annualized growth rate in M2 was a measly 1.7%, or a 4.9% average over the last three months. Growth rates in MZM, a more comprehensive definition of money, were worse off. Through July 2nd, the 13-week annualized growth rate was just 1.2% and an average of 3.4% over the last 3-months. Taking inflation into account, the real 3-month average rate of change in money was just 1.1% for M2 and a decline of 1.3% for MZM.
We think these figures point to tepid economic growth at best and note that the trajectory for growth has been down since before December 2011. That said, we also think that monetary statistics do not yet point towards a recession.
We think these figures point to tepid economic growth at best and note that the trajectory for growth has been down since before December 2011. That said, we also think that monetary statistics do not yet point towards a recession.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment