U.S. Economic News

October 1, 2014

U.S. Economic Indicators

The ADP National Employment report shows that nonfarm private-sector employment increased 213,000 in September, marking the sixth consecutive month of private sector job growth over 200,000.  August’s increase in jobs was revised down by 2,000 to 202,000.  ADP report

Construction spending fell a larger-than-expected 0.8%, down from a revised 1.2% gain in August.  Private nonresidential construction, private residential construction, and public construction fell by 1.4%, 0.1%, and 0.9%, respectively.  Census Bureau report

The ISM Manufacturing Index fell 2.4 percentage points to 56.6% in September, indicating continued expansion in manufacturing.  New orders and employment fell from August levels, while production recorded slightly improved levels.  Report

U.S. News

In a new paper for Brookings, former Treasury Secretary Lawrence Summers finds that the U.S. government should gradually shift to issuing more short-term rather than long-term securities, arguing that doing so would reduce the cost of funding government debt since the interest on short-term debt is cheaper.  Summers and his co-authors also propose institutional changes that would promote more coordination between the Treasury and Federal Reserve, which they find to have been lacking in the years following the financial crisis.  WSJ

Op-ed by Martin Wolf argues that growing inequality in the U.S. has major negative consequences for domestic demand, education levels, and overall levels of economic prosperity.  Inequality has been exacerbated by the growing share of poorly paying low-skilled jobs, regressive payroll taxes, the shift in income from labor to capital, and rising executive pay.  FT

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