Posts Tagged ‘Economic Update’

NO TAPERING YET…BUT COULD IT HAPPEN SOON? The DJIA hit an all-time high Wednesday after the Federal Reserve decided not to reduce its $85 billion monthly stimulus effort. Friday, the index lost 185 points on the heels of comments from St. Louis Fed President James Bullard (who said that QE3 could be tapered next month)…

HOUSEHOLDS BUY CAUTIOUSLY Retail sales rose an underwhelming 0.2% in August, the Commerce Department noted Friday. Economists polled by Reuters had expected a 0.4% advance, which would have matched the July gain for the indicator. Analysts were left wondering if the subdued buying hinted at slower economic growth in the third quarter. INTEREST RATES WEIGH…

BENEATH THE SURFACE, A DISQUIETING JOBS REPORT In August, the U.S. unemployment rate declined to 7.3% with the economy adding 169,000 jobs. Not bad, but details in the Labor Department’s latest report also raised caution flags: the jobless rate fell only because more people gave up the hunt for work, as the labor force participation…

Q2 GDP REVISED UP, CONSUMERS SPEND A BIT MORE Personal spending and personal incomes each rose 0.1% in July, the Commerce Department stated Friday. The tiny household spending advance fell short of the 0.3% increase forecast by economists polled by Bloomberg. In better news, the Commerce Department adjusted its estimate of Q2 GDP to 2.5%…

ARE COSTLIER MORTGAGES IMPACTING HOME SALES? On Friday, the Census Bureau announced an unexpected 13.4% drop in new home purchases for July. In contrast to that news, the National Association of Realtors stated that existing home sales rose 6.5% last month. So what is the takeaway here? Most new home purchase contracts close months in…

CONSUMER PRICES RISE 0.2% IN JULY That was exactly the increase that analysts surveyed by Briefing.com expected, and it was a relief after the 0.5% rise in the Consumer Price Index for June. As for July’s Producer Price Index, it was flat – a welcome contrast to June’s 0.8% jump. RETAIL SALES IMPROVE July didn’t…

IMPRESSIVE SERVICE SECTOR GROWTH Last month saw solid expansion in U.S. service industries, according to the July non-manufacturing PMI from the Institute for Supply Management. ISM’s latest service sector PMI came in at 56.0 compared with 52.2 in June. July’s new orders index rose 6.9% to 57.7, and July’s business activity index climbed 8.7% to…

What if corporate taxes were 7% lower? Specifically, what if the corporate tax rate was reset to 28%, 25% for manufacturing companies? As a tradeoff for this tax cut, what if multinational corporations based in the U.S. paid a one-time fee on accumulated overseas earnings? Finally, what if the resulting one-time revenue was spent on…

JOBS REPORT SENDS MIXED SIGNALS Unemployment sank to a 4½-year low of 7.4% last month, even as the pace of hiring declined a bit from spring. The Labor Department’s July report showed non-farm payrolls expanding by 162,000 jobs, with retail, bar and restaurant hires accounting for most of the gain. The ranks of the self-employed…

CONSUMER SENTIMENT CONTINUES TO RISE In 12 months, the University of Michigan’s index of consumer sentiment has gained almost 13 points. At 85.1, July’s final edition of the index was up 1.0 points from the final June reading. Two notable details: the percentage of respondents saying their home values had increased hit a six-year peak,…