U.S. Economic News

August 31, 2016

U.S. Economic Indicators

The ADP Employment Report shows that private-sector employment increased by 177,000 jobs from July to August.  The gain was entirely attributable to the services sector, which added 183,000 jobs, while the goods sector lost 6,000 jobs.  ADP Report

The Pending Home Sales Index reached its second-highest level in over a decade in July, increasing 1.3% to 111.3 (up 1.4% Y/Y). The rise reflects strong activity in the West; the region’s index reached its highest point in over three years.  NAR Report

U.S. Economic News

The Wall Street Journal reports that the U.S. is on track to experience the longest period of falling food prices in half a century.  An excess of dairy, meats, and grains has been driving the deflationary trend, which is eliminating farmers’ profit margins and forcing them to slash spending.  WSJ

Chicago Fed President Charles Evans says he is increasingly convinced that U.S. economic growth has slowed permanently, which will keep interest rates low for a long time.  Embracing Larry Summers’ secular stagnation theory, Evans argues that lagging productivity growth and an aging population give little reason to expect higher interest rates in the near term.  Reuters

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