Recently, we wrote about the potential disconnect between the weak performance of the economy as measured by gross domestic product (GDP) in the first quarter of 2014 and the run of strong economic data
for April, May, and June 2014. On balance, the economic data release in recent weeks for July 2014 continued to meet or exceed analysts’ expectations, including data released last week (July 28 – August 1, 2014)
on second quarter GDP, July employment, and the July readings on the Institute for Supply Management’s (ISM) manufacturing survey and vehicle sales. In this week’s commentary, we’ll examine whether or not a reconnect
has occurred and also revisit Federal Reserve (Fed) Chair Yellen’s labor market dashboard in the wake of the release of the July 2014 Employment….