U.S. Economic News

U.S. Economic News

November 6, 2018

U.S. News

The Job Openings and Labor Turnover Survey (“JOLTS”), a closely-watched measure of labor market health, indicated there were 7.0 million job openings at the end of September, a decline from August.  Hires edged down to 5.7 million while the quits rate was unchanged at 2.4%.  BLS Report

Mike Bird of the Wall Street Journal writes that China’s neighbors may benefit from the U.S.–China trade war. Economists expect that Taiwan, Vietnam, and South Korea will benefit from U.S. tariffs on Chinese goods as global supply chains realign to avoid tariffs on goods such as clothing and electronic equipment. WSJ

U.S. Economic News

U.S. Economic News

November 5, 2018

U.S. Economic Indicators

The ISM Non-Manufacturing Index dropped 1.3 percentage points to 60.3 in October. The New Orders Index edged down 0.1 percentage point to 61.5 while the Employment Index fell 2.7 percentage points to 59.7. ISM Report

U.S. News

The Wall Street Journal reports that American firms have managed the effects of U.S. tariffs thus far by raising prices or adjusting their supply chains but face worsening prospects next year. Firms in industries ranging from computer chips to heavy machinery say that sales have not yet suffered noticeably due to tariff activity, though the combination of slowing global growth and escalating trade conflicts would have a larger impact in 2019. WSJ

According to the Wall Street Journal, the U.S. has issued waivers to eight countries to exempt them from new sanctions on Iranian oil. The waivers, which allow temporary imports of Iranian oil, were issued to China, India, Italy, Greece, Japan, South Korea, Taiwan, and Turkey and may help alleviate some of the supply pressures seen earlier this year. WSJ

U.S. Economic News

U.S. Economic News

November 2, 2018

U.S. Economic Indicators

New factory orders for manufactured goods rose 0.7% in September following a 2.6% (revised) increase in August, and are up 8.4% year to date. New orders excluding transportation rose 0.4% while new orders for nondefense capital goods excluding aircraft fell 0.1%. Census Bureau Report
 
The U.S. trade deficit increased from $53.3 billion in August (revised) to $54.0 billion in September. 
The goods deficit rose $0.6 billion while the services surplus decreased $0.1 billion. Census Bureau Report
 
The U.S. economy added 250,000 jobs in October, well above consensus. 
The unemployment rate held steady at 3.7%, the labor force participation rate rose to 62.9%, and average hourly earnings accelerated to 3.1% Y/Y. BLS Report

U.S. News

The Wall Street Journal reports that investment banks raised their oil price forecasts last month. Several banks expect further output losses totaling 1 million barrels per day from Iran as U.S. sanctions take effect next week, though it remains to be seen whether other OPEC members can cover some of the lost supply. WSJ

U.S. Economic News

U.S. Economic News

November 1, 2018

U.S. Economic Indicators

The ISM Manufacturing Index declined 2.1 percentage points to 57.7 in October.  The Employment Index fell 2.0 percentage points to 56.8 while the New Orders Index dropped 4.4 percentage points to 57.4.  ISM Report

Construction spending inched up 0.1% in August to an annualized rate of $1.32 trillion.  Public construction rose 2.0% while private construction fell 0.5%.  Census Report
 
Nonfarm business sector labor productivity increased 2.2% in Q3 and was up 1.3% on the year. 
Hours worked increased 1.8% in Q3 and unit labor costs rose 1.2%. BLS Report

Initial jobless claims declined 2,000 to 214,000 last week. The four-week moving average increased 1,750 to 213,750.  DOL Report

U.S. Economic News

U.S. Economic News

October 31, 2018

U.S. Economic Indicators

The ADP Employment Report shows that private-sector employment increased by 227,000 jobs in October, slightly below expectations of 230,000.  The services sector added 189,000 jobs and the goods-producing sector added 38,000 jobs. ADP Report

According to the Employment Cost Index, compensation costs for civilian workers rose 0.8% in the third quarter and are up 2.8% on the year.  Wages and salaries were up 2.9% on the year and benefit costs were up 2.6%.  BLS Report

U.S. News

The Wall Street Journal reports that seaport and trade officials say that U.S. companies earlier this year pulled forward orders for Chinese goods subject to tariffs and are expected to do the same before new tariffs take effect on another wave of goods later this year. Many companies reportedly imported goods without a clear view on future demand, which has led to logistical bottlenecks and increasing costs. WSJ

According to the Wall Street Journal, U.S. companies are raising prices on consumer goods ranging from airline tickets to cookies to shoes. Firms say that rising prices for inputs subject to tariffs and higher transportation costs are forcing them to raise prices for consumers. WSJ