U.S. Economic News

U.S. Economic News

October 7, 2019

U.S. News

Bloomberg reports that Chinese officials are signaling increasing reluctance to agree to a broad trade deal during this week’s round of trade talks, indicating that they are unwilling to discuss Chinese industrial policy reform or government subsidies. With key U.S. demands taken off the table, hopes for a comprehensive trade deal in the near term remain muted. Bloomberg

According to the Wall Street Journal, Kansas City Fed leader Esther George says she isn’t concerned about low inflation levels, which she views as part of normal, temporary fluctuations that do not warrant a policy response. Although George dissented against both quarter-point rate cuts earlier this year, she indicated that future policy adjustments may be necessary if data clearly point to a “broadly weaker economy.” WSJ

U.S. Economic News

U.S. Economic News

October 4, 2019

U.S. Economic Indicators

The U.S. economy added 136,000 jobs in September, below expectations. The unemployment fell to 3.5%, the labor force participation rate was unchanged at 63.2%, and average hourly earnings annual growth declined to 2.9%. BLS Report

The U.S. trade deficit increased from $54.0 billion in July to $54.9 billion in August. The goods deficit rose by $0.8 billion while the services surplus fell by $0.1 billion. Census Bureau Report

U.S. News

According to the Wall Street Journal, the Fed is expected to vote next week to ease liquidity and capital rules for large U.S. banks, lowering regulatory costs for regional lenders with under $700 billion in assets. The move represents the latest in a series of changes intended to soften the impact of regulations imposed under the Dodd-Frank law. WSJ

U.S. Economic News

U.S. Economic News

October 3, 2019

U.S. Economic Indicators

New factory orders for manufactured goods declined 0.1% in August following a 1.4% increase in July and are down 0.1% compared to a year ago. New orders excluding transportation were unchanged while new orders for nondefense capital goods excluding aircraft fell 0.4%. Census Bureau Report

The ISM Non-Manufacturing Index fell 3.8 points to 52.6 in September. The New Orders Index fell 6.6 points to 53.7, while the Employment Index decreased 2.7 points to 50.4. ISM Report

Initial jobless claims rose 4,000 to 219,000 last week. The four-week moving average was unchanged at 212,500 (revised). DOL Report

U.S. News

Bloomberg reports that the median estimate for September job growth is the lowest monthly jobs projection in seven years apart from months affected by severe weather events or government shutdowns. Although the labor market remains tight by historical standards, there is concern that decelerating global demand and weakening manufacturing activity may start to affect U.S. businesses’ hiring plans. Bloomberg

U.S. Economic News

U.S. Economic News

October 2, 2019

U.S. Economic Indicators

The ADP Employment Report shows that private-sector employment increased by 135,000 jobs in September, below expectations of 152,000. The services sector added 127,000 jobs, while the goods-producing sector added 8,000 jobs. ADP Report

U.S. News

The Financial Times reports that that the WTO is set to rule this week on the amount of punitive tariffs the U.S. can impose on a range of European goods in retaliation for illegal E.U. aerospace subsidies. The U.S. is seeking to impose tariffs on around $11 billion of European goods, though WTO arbitrators are expected to approve a much lower amount, adding to an already strained trade relationship between the two economies. FT

Nathaniel Taplin reports for the Wall Street Journal that the index for Chinese export orders outperformed the U.S. Purchasing Managers’ Index (PMI) last month, a rare inversion only seen four times since the financial crisis. The two indicators tend to move together, suggesting that the rebound in Chinese manufacturing health may only be temporary. WSJ

U.S. Economic News

U.S. Economic News

October 1, 2019

U.S. Economic Indicators

The ISM Manufacturing Index declined 1.3 percentage points to 47.8 in September. The Employment Index fell 1.1 percentage points to 46.3, while the New Orders Index rose 0.1 percentage point to 47.3. ISM Report

Construction spending edged up 0.1% in August to an annualized rate of $1.29 trillion. Private construction was essentially unchanged while public construction rose 0.4%. Census Bureau Report

U.S. News

According to the Wall Street Journal, Chicago Fed President Charles Evans stated that the recent Fed rate cuts were necessary to keep the economy on track, and the economy remains generally healthy despite potential risks which may or may not materialize. He expects the U.S. economy to grow at a rate of around 2.25% in 2019 and for inflation to slowly rise to the central bank’s 2% target over the next several years. WSJ

The Wall Street Journal reports that average terms for car loans are growing longer in response to a rapid rise in car prices despite tepid income growth over the past decade. About a third of loans for new vehicles in 2019 had terms of longer than six years — the standard length — while the total volume of U.S. auto-related debt has risen to nearly $1.3 trillion. WSJ