Gasoline Demand: An Under-Reported Story? -- January 27, 2017

Yesterday we saw a surge in first time unemployment claims, up 22,000, far surpassing what analysts had forecast.

Let's see the data on "gasoline demand" over same period.

Wow, wow, wow! Look at the incredible plunge in "gasoline demand" over the past couple of weeks. The steep (negative) slope of the curve is truly amazing, when the backdrop is the media narrative of an improving economy.

Remember: gasoline is at historically, ridiculously low prices. The price of gasoline is not driving demand down. 

The graphic compares current data with data from one year ago.

By the way, when looking at the graph above, put that in context with the first estimate of the 4Q16 GDP: it came in very, very weak, at 1.9%; below 2.4% expectation; and, that was less than the 2.9% predicted earlier in the month.

How does current data compare with data January, 2008, just before the economy tanked; in January, 2009, when things were looking incredibly bad -- folks were truly worried about implosion of the US economy; and now, in January, 2017, when things are supposed to going so well.

January, 2008:

January, 2009:

January, 2017: