U.S. Economic News

U.S. Economic News

December 2, 2020

U.S. Economic Indicators

The ADP Employment Report shows that private-sector employment increased by 307,000 jobs in November, below expectations. The services sector gained 276,000 jobs, while the goods-producing sector gained 31,000 jobs. ADP Report

U.S. News

The Financial Times reports that ex-Fed chair and Biden Treasury Secretary pick Janet Yellen is warning about the potential for “more devastation” as self-reinforcing recession effects take hold in the absence of quick government action. Her comments provide insight into the first priorities for the incoming presidential administration, which are expected to include additional spending on unemployment benefits and aid for small businesses and state and local governments. FT

U.S. Economic News

U.S. Economic News

December 1, 2020

U.S. Economic Indicators

The ISM Manufacturing Index fell 1.8 points to 57.5 in November. The Employment Index fell 4.8 points to 48.4, while the New Orders Index fell 2.8 points to 65.1. ISM Report

Construction spending rose 1.3% in October to an annualized rate of $1.44 trillion. Private construction rose 1.4% while public construction ticked up 1.0%. Census Bureau Report

U.S. Economic News

U.S. Economic News

November 30, 2020

U.S. Economic Indicators

The National Association of Realtors Pending Home Sales Index fell 1.1% in October (up 20.2% Y/Y). NAR reports that the combination of scarce housing, low mortgage rates, and strong demand are starting to push home prices to levels that may hurt affordability. NAR Report

U.S. News

The Wall Street Journal reports that President-elect Joe Biden intends to nominate a series of both liberal and centrist economic advisers to fill out the top economic policymaking positions in his administration. Several of these advisers played key roles in dealing with the aftermath of the last financial crisis, and many members of the new team have stated that aggressive stimulus is necessary to get the economy back to its pre-pandemic health and the benefits of spending now far outweigh the risks of spending or borrowing too much. WSJ

U.S. Economic News

U.S. Economic News

November 25, 2020

U.S. Economic Indicators

New orders of manufactured durable goods rose 1.3% in October after increasing 2.1% (revised) in September. Excluding transportation, new orders rose 1.3% last month after rising 1.5% the month before. Census Bureau Report

The U.S. Census Bureau Advance Economic Indicators Report shows that the goods deficit expanded to $80.3 billion in October from $79.4 billion in September. Meanwhile, wholesale inventories rose 0.9% and retail inventories rose 0.8%. Census Bureau Report

Real disposable personal income decreased 0.8% in October, while real personal consumption expenditures (PCE) rose 0.5%. Both the PCE price index (up 1.2% Y/Y) and the core price index (up 1.4% Y/Y) were unchanged. BEA Report

New home sales declined 0.3% in October to a seasonally adjusted annual pace of 999,000 but were up 41.5% above year-ago levels. The median sales price edged down to $330,600 and the inventory of new homes was unchanged at 3.3 months at the current sales rate. Census Bureau Report

Initial jobless claims rose 30,000 to 778,000 last week. The four-week moving average increased 5,000 to 748,500. DOL Report

U.S. Economic News

U.S. Economic News

November 24, 2020

U.S. Economic Indicators

The Conference Board Consumer Confidence Index fell from 101.4 (revised) in October to 96.1 in November. Consumers’ assessment of current business and labor market conditions and near-term expectations for jobs, business conditions, and financial prospects declined. Conference Board Report

U.S. News

The Wall Street Journal reports that former Fed chair Janet Yellen, chosen by President-elect Joe Biden to be the next Treasury Secretary, will face the challenge of building broad consensus on economic policy as the economic recovery loses momentum and additional stimulus from Congress remains uncertain. Yellen has said that pulling back on spending too abruptly could lead to a sluggish recovery like the one that followed the financial crisis, and has argued that risks associated with borrowing to support the recovery remain low so long as interest rates and inflation stay muted. WSJ