- The coronavirus (COVID-19) continued to dominate the news all over the globe. Governments and central banks all over the world are scrambling to alleviate the negative effects of the virus on economies and citizens. The Federal Reserve Bank took a set of measures to support the flow of credit to households and businesses and increase liquidity in the US and other countries. The state and local governments are introducing measures and rulings to slow the spread of the virus. The federal government is in the process of introducing laws to reduce this unprecedented blow to millions of Americans. The virus seems to be here to stay for some time; and people are trying to adjust to a completely new lifestyle.
- Advance estimates of retail and food services sales for February were down 0.5% from January but were up 4.3% from February 2019. Excluding motor vehicle & parts, sales were down 0.4% from the previous month, but were up 4.2% from a year ago. Year-to-date, retail and food services sales were up 6.5% from the same period a year ago.
- Total manufacturing and trade sales for January were up 0.6% from the previous month and were up 2.1% from January 2019. Total business inventories were down 0.1% from the previous month but were up 1.1% from a year ago. The inventories/sales ratio was 1.38, compared with 1.40 in January of 2019.
- Total Industrial production increased 0.6% in February, after a decrease of 0.5% in the previous month. Total Industrial production was unchanged from February 2019. The capacity utilization rate was 77.0 in February, 2.8 percentage points below the average for the 1972-2019 period, and 1.5 percentage points below the February 2019 level.
- The U.S. current account deficit decreased by $15.6 billion to $109.8 billion in the fourth quarter of 2019, according to the U.S. Bureau of Economic Analysis (BEA). The revised third quarter deficit was $125.4 billion. The fourth quarter deficit was 2.0% of current dollar gross domestic product (GDP), down from 2.3% in the third quarter. The $15.6 billion narrowing of the current account deficit in the fourth quarter mainly reflected a reduced deficit on goods that was partly offset by an expanded deficit on secondary income.
- Housing starts decreased 1.5% in February. The February figure of 1,599 thousand, seasonally adjusted and annualized, was 39.2% above the February 2019 figure. Building permits decreased 5.5% in February. The February figure of 1,464 thousand, seasonally adjusted and annualized, was 13.8% above the February 2019 level.
- The results of Freddie Mac’s Primary Mortgage Market Survey showed average fixed mortgage rates rising. 30-year fixed-rate mortgage averaged 3.65% for the week ending March 19, up from last week when it averaged 3.36%. A year-ago at this time, the 30-year fixed-rate averaged 4.28%. 15-year fixed-rate mortgage averaged 3.06%, up from last week when it averaged 2.77%. A year-ago at this time, the 15-year fixed-rate averaged 3.71%.
- Mortgage applications decreased 8.4% from a week earlier, according to data from Mortgage Bankers Association’s (MBA) Weekly Applications Survey for the week ending March 13th.
- The advance figure for initial claims for unemployment insurance increased 70 thousand to 281 thousand in the week ending March 14. This is the highest level for initial claims since September 2, 2017 when it was 299 thousand. The 4-week moving average was 232.25 thousand, an increase of 16.5 thousand from the previous week’s average. This is the highest level for this average since January 27, 2018 when it was 234.5 thousand. The advance number for seasonally adjusted insured unemployment (ongoing) during the week ending March 7 was 1,701 thousand, an increase of 2 thousand from the previous week’s revised level. The 4-week moving average was 1,703.25 thousand, a decrease of 7 thousand from the previous week’s revised average.
- Unemployment rates were lower in January in 5 states and stable in 45 states and the District of Columbia, according to the U.S. Bureau of Labor Statistics. Eleven states had jobless rate decreases from a year earlier, one state had an increase, and 38 states and the District had little or no change. Nonfarm payroll employment increased in 12 states in January 2020 and was essentially unchanged in 38 states and the District of Columbia. Over the year, 18 states added nonfarm payroll jobs and 32 states, and the District of Columbia were essentially unchanged.
- Unemployment rates were lower in January than a year earlier in 292 of the 389 metropolitan areas, higher in 77 areas, and unchanged in 20 areas, according to the U.S. Bureau of Labor Statistics. Nonfarm payroll employment increased over the year in 31 metropolitan areas, decreased in one area, and was essentially unchanged in the remaining 357 areas.
- The number of job openings was 6.983 million on the last business day of December, according to the U.S. Bureau of Labor Statistics. Over the month, hires and separations little changed at 5.824 million and 5.614 million, respectively.
- Private industry employers spent an average of $34.72 per hour worked for total employee compensation in December 2019, according to the U.S. Bureau of Labor Statistics. Wages and salaries averaged $24.36 per hour worked and accounted for 70.1% of these costs, while benefit costs averaged $10.37 and accounted for the remaining 29.9%.
- The Conference Board index of leading economic indicators increased 0.1% in February, after a 0.7% in the previous month. In the six-month period ending February 2020, the leading economic index increased 0.3% (about a 0.5% annual rate). The coincident index increased 0.3% in February, following a 0.1% increase in January. The coincident economic index rose 0.7% (about a 1.5% annual rate) for the six-month period ending February 2020.
- The March (collected between March 2 and March 10) Empire State Manufacturing Survey indicated that business activity declined. The general business conditions index was negative 21.5 in March, compared with 12.9 in February. The prices paid decreased from 25.0 in February to 24.5 in March. The prices received decreased from 16.7 in February to 10.1 in March.
- The Federal Reserve Bank of Philadelphia Manufacturing Business Outlook Survey for indicated a significant weakening in regional manufacturing activity in March. The diffusion index for current activity declined markedly from positive 36.7 in February to negative 12.7 in March, lowest level since July 2012. The prices paid decreased from 16.4 in February to 4.8 in March. The prices received decreased from 17.1 in February to 6.8 in March.
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