· Advance estimates of retail and food services sales for November were up 0.8% from the previous month, and were up 5.8% from November 2016. Excluding motor vehicle & parts, sales were up 1.0% from the previous month, and were up 5.7% from a year ago. Year-to-date, retail sales and food services were up 4.2% from the same period of 2016.
· Total manufacturing and trade sales for October were up 0.6% from the previous month, and were up 6.5% from October 2016. Total business inventories were down 0.1% from the previous month, but were up 3.5% from a year ago. The inventories/sales ratio was 1.35, compared to 1.39 in October of 2016.
· Total Industrial production increased 0.2% in November, after increasing 1.2% in the previous month. Total Industrial production was up 3.4% from November 2016. The capacity utilization rate was 77.1 in November, 2.8 percentage points below the average for the 1972-2016 period.
· Import prices increased 0.7% in November, according to the U.S. Bureau of Labor Statistics, following a 0.1% increase in the previous month. Prices for imports increased 3.1% from November 2016. The price index for exports advanced 0.5% in November, after increasing 0.1% in the previous month. Prices for exports advanced 3.1% over the past year.
· The producer price index for final demand (headline index) increased 0.4% in November, the same increase as in October and September. The index for final demand less foods, energy, and trade increased 0.4%, following an increase of 0.2% in the previous month. The producer price index for final demand (headline index) increased 3.1% from November 2016 to November 2017, while the index for final demand less foods, energy, and trade was up 2.4%.
· The consumer price index (headline index), increased 0.4% in November, following a 0.1% in the previous month. The core index increased 0.1%, following a 0.2% increase in the previous month. The consumer price index increased 2.2% for the 12-month period ending in November, while the core index rose 1.7%.
· Real average hourly earnings for all employees decreased 0.2% from October to November. This result stems from a 0.2% increase in average hourly earnings being more than offset by a 0.4% increase in the consumer price index for all urban consumers.
· The advance figure for initial claims for unemployment insurance decreased 11 thousand to 225 thousand in the week ending December 9. The 4-week moving average was 234.75 thousand, a decrease of 6.75 thousand from the previous week’s revised average.
· The results of Freddie Mac’s Primary Mortgage Market Survey showed average fixed mortgage rates holding relatively flat across the board. 30-year fixed-rate mortgage averaged 3.93% for the week ending December 14, down from last week when it averaged 3.94%. A year ago at this time, the 30-year fixed-rate averaged 4.16%. 15-year fixed-rate mortgage averaged 3.36%, unchanged from the previous week. A year ago at this time, the 15-year fixed-rate averaged 3.37%.
· Mortgage applications decreased 2.3% from a week earlier, according to data from Mortgage Bankers Association’s (MBA) Weekly Applications Survey for the week ending December 8th.
· The December Empire State Manufacturing Survey indicated that business activity continued to grow at a solid clip for New York manufacturers. The current business conditions index was 18.0 in December, compared with 19.4 in November. Prices increased at a faster pace than last month. The prices paid index climbed five points to 29.7, and the prices received index increased two points to 11.6.
· The Federal Open Market Committee decided to raise the target range for the federal funds rate to 1.25% to 1.50%. “The Committee expects that economic conditions will evolve in a manner that will warrant only gradual increases in the federal funds rate; the federal funds rate is likely to remain, for some time, below levels that are expected to prevail in the longer run.”