U.S Economic News

U.S Economic News

September 9, 2020

U.S. Economic Indicators

The Job Openings and Labor Turnover Survey (“JOLTS”) indicates that the number of job openings rose 617,000 to 6.6 million in July. The number of hires fell 1.2 million to 5.8 million, while the quits rate edged up to 2.1 percent. BLS Report

U.S. News

Tory Newmyer writes for the Washington Post that while the Senate is preparing to vote on a slimmed-down $500 billion stimulus package on Thursday, the bill is not expected to advance due to a lack of support from House Democrats and even some Republicans. There are few indications that bipartisan talks are close to reviving, though many Wall Street firms continue to assume an imminent stimulus package in their economic forecasts, likely overestimating the pace of recovery. WaPo

According to the Financial Times, a recent survey by the American Chamber of Commerce found that just 4% of U.S. companies operating in China have plans to relocate any production capacity back to the U.S., indicating that businesses are not overly concerned about the possibility of U.S.-China decoupling. More than 70% of companies indicated they have no plans to relocate any manufacturing capacity out of China, though the rapidly deteriorating U.S.-China relationship was cited as companies’ largest concern for the first time in the survey’s history. FT

U.S. Economic News

U.S. Economic News

September 8, 2020

U.S. Economic Indicators

The NFIB Small Business Optimism Index rose 1.4 points to 100.2 in August as seven components improved, two weakened, and one was unchanged. Current job openings and plans to increase employment improved, while expectations for future sales and overall economic conditions declined. NFIB Report

U.S. News

The Wall Street Journal reports that Q2 was the best quarter for the mortgage market since at least 2000 as lenders issued $1.1 trillion in home loans. The housing market has proven to be one of the few bright spots in the U.S. economy, though analysts note that most of the increase in loan activity has been from refinancings, which are unlikely to stimulate much new activity in the broader economy. WSJ

According to the Financial Times, banks are growing increasingly concerned about their ability to recoup loans secured against commercial property as hotels and office buildings remain empty months into the public health crisis. Criticized loans rose 62% in Q2 as disruption in the property sector begins to impact measures of financial strength for major U.S. banks. FT

U.S. Economic News

U.S. Economic News

September 3, 2020

U.S. Economic Indicators

Initial jobless claims fell 130,000 to 881,000 last week. The four-week moving average fell 77,500 to 991,750. DOL Report

Nonfarm business sector labor productivity increased 10.1% in Q2 (revised) and was up 2.8% compared to a year ago. Hours worked decreased 42.9% in Q2 and unit labor costs rose 9.0%. BLS Report

The ISM Services Index fell 1.2 points to 56.9 in August, indicating continued growth in the services sector but at a slower rate than the prior month. The New Orders Index declined 10.9 points to 56.8, while the Employment Index rose 5.8 points to 47.9. ISM Report

The U.S. trade deficit increased from $53.5 billion (revised) in June to $63.6 billion in July. The goods deficit rose by $9.3 billion while the services surplus fell by $0.8 billion. Census Bureau Report

U.S. Economic News

U.S. Economic News

September 2, 2020

U.S. Economic Indicators

The ADP Employment Report shows that private-sector employment increased by 428,000 jobs in August, below expectations. The services sector gained 389,000 jobs, while the goods-producing sector gained 40,000 jobs. ADP Report

New factory orders for manufactured goods rose 6.4% in July following a 6.4% (revised) increase in June. New orders excluding transportation were up 2.1%, while new orders for nondefense capital goods excluding aircraft rose 1.9%. Census Bureau Report

U.S. News

The Washington Post reports that the White House announced a four-month eviction moratorium for individual Americans making under $99,000 or couples making under $198,000 in an effort to stave off a looming housing crisis. While housing advocates point out that the moratorium merely delays evictions rather than preventing them, the new policy could temporarily help as many as 40 million Americans struggling to cover monthly housing costs. WaPo

U.S. Economic News

U.S. Economic News

September 1, 2020

U.S. Economic Indicators

The ISM Manufacturing Index rose 1.8 points to 56.0 in August. The Employment Index rose 2.1 points to 46.4, while the New Orders Index rose 6.1 points to 67.6. ISM Report

Construction spending ticked up 0.1% in July to an annualized rate of $1.36 trillion. Private construction rose 0.6% while public construction declined 1.3%. Census Bureau Report

U.S. News

The Wall Street Journal reports that while the president’s payroll-tax deferral plan — intended to temporarily boost workers’ take-home pay — goes into effect today, few large employers are expected to participate. While the plan would provide consumers with larger paychecks through the end of this year, withholding levels would be doubled early next year with employers on the hook for implementation and repayment costs. WSJ