A number of years ago, to gauge how the economy was doing people waited for the factory growth numbers for the month. As the economy has changed, in the US the housing market and consumer spending is much more important. In the US, consumer spending as reported by Reuters posted its strongest gain in 5 months. Lucia Mutikani quoted Chris Rupkey chief economist at MUTG in New York as consumer spending is accelerating and inflation is holding firm in a tightening labor market, so the Fed is likely to stay on course with its gradual rate hikes this year despite the signs of uncertainty elsewhere.

Consumer spending which accounts for 2/3s of the US economy jumped 0.6 % in April the Commerce Department noted.

In China, where much of the US factories have relocated, they grew at its fastest pace in 8 months. The official Purchasing Manager’s Index (PMI) released on May 31 rose to 51.9 and remained well above the 50 point mark that separates growth from contraction for the 22nd month.

Cost pressure is still one of the major problems facing Chinese manufacturers noted Zhao Qinghe, an official with the statistics bureau. In China the services sector now accounts for half of the economy.

Linking to dividend paying stocks, over time economies change from agricultural to manufacturing to service. As the economy changes the key numbers to gauge how well the economy is doing change. Remember the old adage – a concern with the economy is when your neighbor’s loses his job, a recession is when you lose yours. Each of us picks and chooses different numbers to understand how the economy is doing locally and nationally. Remember why they are important and how that translates to making decisions.

There are more questions than answers, till the next time – to raising questions.