The European economy remains strong overall

While in the United States some sectors of the economy might gain momentum in the second half of the year, in Europe the growth process is still trending upward. The European Central Bank is positioning the move rates in the near future, as the currency remains supported but with caution.

Consumer confidence still supportive in the U.S.

Latest data appears to confirm that the economy in the Unites States is only mildly moderating, with some parts of the growth process gaining momentum and others showing tentative sings of stabilization. In fact, while in April durable goods orders increased below expectations at 0.6% (market was forecasting an increase of 1%), March orders were revised to 5% from earlier estimate. April has been the fifth increase over the past six months and it supports durable orders to the highest level since December 2006. Orders declined for transportation equipment (-1.3%), civilian airplanes (-10.7%) and motor vehicles. Gains were seen in orders for defense aircraft and parts. Core orders, non-defense capital goods excluding aircraft, moved 1.2% after gaining 4.4% in March. Unfilled orders, an indicator to future activity, jumped 1.8% pairing March gain. Inventories rose by 0.5%, the most in seven months. Shipments increased 1.9%, after rising 1.3% in March.


Angelo Airaghi is a Commodity Trading Advisor, registered with the National Futures Association and the Commodity Futures Trading Commission. He has been an active professional since 1990 working for major international financial companies. In the past 10 years, Angelo Airaghi has been an analyst and commentator for national and international media.

This article contains the following sections:

Consumer confidence still supportive in the U.S.

The European Central Bank might rise rates in the near future

Euro ¡s still in trading range

by Angelo Airaghi [Guest Analyst]

5/28/2007