Archive for August, 2019

Key Economic Indicators – September 2, 2019

Friday, August 30th, 2019
  • Real GDP increased at an annual rate of 2.0% in the second quarter of 2019, according to the “second” estimate by the Bureau of Economic Analysis. In the first quarter, real GDP increased 3.1%. In the advance estimate, released a month ago, the increase in real GDP was 2.1% for the second quarter.
  • Real final sales of domestic product (GDP less change in private inventories) increased 3.0% in the second quarter, in contrast to an increase of 2.6% in the first quarter.
  • Real gross domestic income (GDI) increased 2.1% in the second quarter of 2019, compared with an increase of 3.2% in the first quarter.
  • The average of real GDP and real GDI, a supplemental measure of U.S. economic activity that equally weights GDP and GDI, increased 2.1% in the second quarter, compared with an increase of 3.2% in the previous quarter.
  • The price index for gross domestic purchases increased 2.2% in the second quarter of 2019, compared with an increase of 0.8% in the previous quarter.
  • The personal consumption expenditures (PCE) price index increased 2.3% in the second quarter, compared with an increase of 0.4% in the previous quarter. Excluding food and energy prices, the PCE price index increased 1.7%, compared with an increase of 1.1%.
  • Corporate profits from current production increased $105.8 billion in the second quarter, in contrast to a decrease of $78.7 billion in the previous quarter. Profits of domestic financial corporations increased $4.0 billion in the second quarter, in contrast to an increase of $22.2 billion in the previous quarter. Profits of domestic nonfinancial corporations increased $43.5 billion, compared with a decrease of $108.2 billion in the previous quarter. The rest-of-the-world component of profits increased $58.3 billion, compared with an increase of $7.3 billion in the previous quarter.
  • Personal income increased 0.1% in July, and personal consumption expenditures increased 0.6%. The price index for personal consumption expenditures increased 0.2% in July, following a 0.1% increase in the previous month. The core index also increased 0.2% in July.  The headline index was up 1.4%, and the core index was up 1.6% from July 2018.
  • New orders for manufactured durable goods in July increased 2.1%.  Excluding transportation, new orders decreased 0.4%.  Excluding defense, new orders increased 1.4%.  Shipments decreased 1.1% in July. Year-to-date shipments increased 3.2% and new orders increased 0.3% from the same period a year ago.
  • Retail inventories for July were up 0.8% from the previous month, and were up 4.5% from July 2018, according to the U.S. Census Bureau.
  • Wholesale inventories for July were up 0.2% from the previous month and were up 7.1% from a year ago.
  • The international trade deficit in goods was $72.3 billion in July, down $1.8 billion from $74.2 billion in June, according to the U.S. Census Bureau.  Exports of goods for July were $137.3 billion, $0.9 billion more than June exports. Imports of goods for July were $209.7 billion, $0.9 billion less than June imports.
  • The advance figure for initial claims for unemployment insurance increased 4 thousand to 215 thousand in the week ending August 24. The 4-week moving average was 214.5 thousand, a decrease of 0.5 thousand from the previous week’s unrevised average. The advance number for seasonally adjusted insured unemployment (ongoing) during the week ending August 17 was 1,698 thousand, an increase of 22 thousand from the previous week’s revised level. The 4-week moving average was 1,697.25 thousand, a decrease of 0.25 thousand from the previous week’s average.
  • Unemployment rates were lower in July than a year earlier in 217 of the 389 metropolitan areas, higher in 141 areas, and unchanged in 31 areas, according to the U.S. Bureau of Labor Statistics. A total of 61 areas had jobless rates of less than 3.0% and 3 areas had rates of at least 10.0%. Nonfarm payroll employment increased over the year in 51 metropolitan areas and was essentially unchanged in the remaining 338 areas.
  • The results of Freddie Mac’s Primary Mortgage Market Survey showed that average fixed mortgage rates were little changed. The 30-year fixed mortgage rate averaged 3.58% for the week ending August 29, up from last week when it averaged 3.55%. A year ago at this time, the 30-year fixed mortgage rate was 4.52%. The 15-year fixed mortgage rate averaged 3.06%, up from the previous week when it averaged 3.03%. A year ago at this time, the 15-year fixed mortgage rate was 3.97%.
  • Mortgage applications decreased 6.2% from a week earlier, according to data from Mortgage Bankers Association’s (MBA) Weekly Applications Survey for the week ending August 23rd.
  • The Thomson Reuters/University of Michigan Index of Consumer Sentiment decreased to 89.8 in August, from 98.4 in July.  The Index was 96.2 a year ago. The Current Conditions Index decreased from 110.7 in July to 105.3 in August, while the Index of Consumer Expectations dropped down to 79.9 in August, from 90.5 in July.

Key Economic Indicators – August 26, 2019

Friday, August 23rd, 2019
  • July existing home sales were up 2.5% from the previous month and were up 0.6% from a year ago. The median sales price of existing houses sold was $280.8 thousand, 4.3% above July 2018.
  • The results of Freddie Mac’s Primary Mortgage Market Survey of August 22nd showed average fixed mortgage rates dropped to their lowest levels since November 2016. 30-year fixed-rate mortgage averaged 3.55% for the week ending August 22nd, down from last week when it averaged 3.60%. A year ago at this time, the 30-year fixed-rate mortgage averaged 4.51%. 15-year fixed-rate mortgage averaged 3.03%, down from last week when it averaged 3.07%. %. A year ago at this time, the 15-year fixed-rate mortgage averaged 3.98%.
  • Mortgage applications decreased 0.9% from a week earlier, according to data from Mortgage Bankers Association’s (MBA) Weekly Applications Survey for the week ending August 16th.
  • The advance figure for initial claims for unemployment insurance decreased 12 thousand to 209 thousand in the week ending August 17th. The 4-week moving average was 214.5 thousand, an increase of 0.5 thousand from the previous week’s average. The advance number for seasonally adjusted insured unemployment (ongoing) during the week ending August 10 was 1,674 thousand, a decrease of 54 thousand from the previous week’s revised level. The 4-week moving average was 1,697 thousand, a decrease of 0.75 thousand from the previous week’s revised average.

Key Economic Indicators – August 19, 2019

Friday, August 16th, 2019
  • Advance estimates of retail and food services sales for July were up 0.7% from the previous month and were up 3.4% from July 2018. Year-to-date, retail sales were up 3.1% from the same period a year ago.
  • Total manufacturing and trade sales for June were up 0.1%, while inventories held steady. The total business inventories/sales ratio at the end of June was 1.39, compared with 1.34 in June 2018.
  • Total Industrial production decreased 0.2% in July, following a 0.2% increase in the previous month. The index of industrial production in July was 0.5% above its year-ago level. The rate of capacity utilization for total industry was 77.5%, 2.3 percentage points below its 1972-2018 average, and 1.3 percentage points below its level in July 2018.
  • The import price index increased 0.2% in July, following a 1.1% decrease in the previous month. The export price index increased 0.2%, following a 0.6% decrease in the previous month. The import price index decreased 1.8% from July 2018, while export prices decreased 0.9%.
  • The consumer price index increased 0.3% in July, after an increase of 0.1% in the previous month. The core index increased 0.3%, the same increase as in the previous month. The consumer price index (headline index) increased 1.8% for the 12-month period ending in July, and the core index rose 2.2%.
  • Real average hourly earnings for all employees decreased 0.1% from June to July. This result stems from a 0.3% increase in average hourly earnings combined with a 0.3% increase in the consumer price index for all urban consumers.
  • Nonfarm business sector labor productivity increased 2.3% in the second quarter of 2019, according to the U.S. Bureau of Labor Statistics, as output increased 1.9% and hours worked decreased 0.4%. From the second quarter of 2018 to the second quarter of 2019, productivity increased 1.8%, reflecting a 2.6% increase in output and a 0.8% increase in hours worked. Unit labor costs in the nonfarm business sector increased 2.4% in the second quarter of 2019 and increased 2.5% over a year ago.
  • The advance figure for initial claims for unemployment insurance was 220 thousand in the week ending August 10, an increase of 9 thousand from the previous week’s level. The 4-week moving average was 213.75 thousand, an increase of a thousand from the previous week’s average.
  • The results of Freddie Mac’s Primary Mortgage Market Survey showed average fixed mortgage rates remained near historical lows. The 30-year fixed mortgage rate averaged 3.60% for the week ending August 15, unchanged from last week. A year ago at this time, the 30-year fixed rate averaged 4.53%. The 15-year fixed mortgage rate averaged 3.07%, up from last week when it averaged 3.05%. year ago at this time, the 15-year fixed rate averaged 4.01%.
  • Mortgage applications increased 21.7% from a week earlier, according to data from Mortgage Bankers Association’s (MBA) Weekly Applications Survey for the week ending August 9th.

Key Economic Indicators – August 12, 2019

Saturday, August 10th, 2019
  • Sales of merchant wholesalers in June were down 0.3% from the previous month and were down 0.2% from June of 2018. Sales of durable goods were up 0.2%, while sales of nondurable goods were down 0.7%. Inventories of merchant wholesalers were up less than 0.1% from the previous month and were up 7.6% from a year ago.  The June inventories/sales ratio was 1.36, compared with 1.26 a year ago.
  • The results of Freddie Mac’s Primary Mortgage Market Survey showed average fixed mortgage rates dropped significantly. The 30-year fixed mortgage rate averaged 3.60% for the week ending August 8, down from last week when it averaged 3.75%. This was the lowest rate since November 2016. The 15-year fixed mortgage rate averaged 3.05%, down from last week when it averaged 3.20%.
  • Mortgage applications increased 5.3% from a week earlier, according to data from Mortgage Bankers Association’s (MBA) Weekly Applications Survey for the week ending August 2nd.
  • The producer price index for final demand (headline index) increased 0.2% in July, following a 0.1% increase in the previous month.  The index for final demand less foods, energy, and trade decreased 0.1%, after holding steady in the previous month. The producer price index for final demand increased 1.7% for the 12 months ended in July. The index for final demand less foods, energy, and trade also increased 1.7% during the same period.
  • The advance figure for initial claims for unemployment insurance decreased 8 thousand to 209 thousand in the week ending August 3. The 4-week moving average was 212.25 thousand, an increase of 0.25 thousand from the previous week’s average.
  • The number of job openings little changed at 7.3 million on the last business day of June, according to the U.S. Bureau of Labor Statistics. Over the month, hires and separations were little changed at 5.7 million and 5.5 million, respectively.

Key Economic Indicators – August 5, 2019

Sunday, August 4th, 2019
  • Total non-farm payroll employment rose by 164 thousand in July, following an increase of 193 thousand in the previous month, according to the U.S. Bureau of Labor Statistics. Private-sector payrolls increased by 148 thousand in July, while government employment increased by 16 thousand. Notable job gains occurred in professional and technical services, health care, social assistance, and financial activities.
  • The unemployment rate held steady at 3.9% in July. The unemployment rate was 3.9% in July 2018.
  • The number of unemployed increased by 88 thousand to 6.063 million. The number of long-term unemployed (those jobless for 27 weeks or more) decreased by 248 thousand to 1.166 million and accounted for 19.2% of the unemployed.
  • The labor force participation rate increased by 0.1 percentage point to 63.0% in July.
  • The average workweek of all employees on private nonfarm payrolls decreased by 0.1 hours to 34.3 hours.
  • In July, average hourly earnings of all employees on private nonfarm payrolls increased by 8 cents to $27.98. Over the past 12 months, average hourly earnings were up 3.2%.
  • The Federal Open Market Committee decided to lower the target range for the federal funds rate by 25  basis points to 2% to 2,25%.