Your Monthly Update in U.S. Economic Trends
Year-to-Date Budget Deficit Down 25% from a Year Ago
The Treasury Department recently reported that the deficit between October and February totaled $162.2 billion, down 25.5% from the same period in 2005. For the 2007 budget year, which began in October, revenues were up 9.3% to a record high of $954.4 billion. According to the Bush Administration, the 2007 deficit should reach $244 billion, an improvement from the 2006 deficit of $248.2 billion.
FoxNews.com – March 12, 2007
Confidence Falls as Fuel Prices Climb
According to the University of Michigan, consumer confidence hit a five-month low as it continued to decline in February to 91.3, down 5.6 since January. The fall in consumer confidence after a two-year high came as fuel prices increased and employment weakened. According to the survey’s expectations index, which some economists see as an indicator for future spending, consumer confidence fell from 87.6 in January to 81.5 in February.
The Boston Globe – March 3, 2007
Services Expand Less Than Forecast in February
The Institute for Supply Management reported that their non-manufacturing businesses index decreased from 59 in January to 54.3 in February. An expanding index is indicated by a reading above 50. The U.S. service industry expanded at its slowest pace in four years, suggesting a slowdown in the economy that extends past housing and manufacturing.
Bloomberg.com – March 5, 2007
U.S. Employers Added 97,000 Jobs in February
Employers seem to be standing strong as opportunities continue to grow for job seekers, according to a report released by the Labor Department. Employers added 97,000 new jobs in February, the fewest in two years. The unemployment rate decreased to 4.5%, while wages increased. Construction companies, feeling the strain from the housing market, cut 62,000 jobs in February while factories eliminated 14,000 jobs. Despite these losses, there were employment gains in health care facilities, financial companies, computer-design firms, bars and restaurants, retailers and the government.
MSNBC.com – March 9, 2007
Average Gasoline Price Rises 20 Cents
Industry analysts report that gas prices in the U.S. rose 20 cents to an average of $2.55 a gallon. They say demand could also increase in the coming weeks. This month, gas prices had their highest incline since September but fell short of August’s record of $3.03 a gallon, according to the Lundberg survey of about 7,000 gas stations.
CNNMoney.com – March 12, 2007
Bad Weather Holds Back February Retail Sales
Bad weather across the country kept consumers away from malls in February, resulting in only a 0.1% increase in sales, according to the Commerce Department. The increase was lower than the anticipated 0.3% increase.
MSNBC.com – March 13, 2007
Manufacturing Up, Consumer Spending Strong
The Institute for Supply Management reported that U.S. consumer spending was higher than expected in January, and the manufacturing index rose from a 49.3 to 52.3 in February. The rise was well above economists’ median forecast of 50. Experts attribute this increase to growth in new orders, production and employment.
WashingtonPost.com – March 1, 2007
Factory Orders Plunge 5.6% in January
The Commerce Department reported that factory orders fell 5.6% in January. This is the biggest decline since July 2000, which marked a slowing economy in advance of the 2001 recession. This decrease in factory orders, along with other weaker-than-expected indicators, increased concerns that the economic slowdown could be more serious than previously expected.
FoxNews.com – March 6, 2007
Fed Finds Soft Spot in U.S. Economy
According to the Federal Reserve, business growth across the country has decreased, suggesting a slowing economy in some regions and industries. A survey conducted by the Federal Reserve reported that the economy expanded modestly from January to February. However, this survey was released before the manufacturing sector showed signs of further weakening.
WashingtonPost.com – March 8, 2007
Consumer Borrowing Increases in January
Consumer credit debt increased at an annual rate of 3.2% in January, up from 2.5% in December, according to the Federal Reserve. Analysts believe that faster wage growth gives consumers confidence to take on more debt. The auto loans category of debt increased at an annual rate of 4.4%, up from 2.9% in December. Credit card debt slowed in January, only increasing 1.1%. This was down from 1.9% in December. The increase in consumer borrowing has pushed total consumer debt up by $6.4 billion, bringing it to a total of $2.41 trillion.
MSNBC.com – March 7, 2007
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