Your Monthly Update in U.S. Economic Trends
U.S. Employers Ramped Up Hiring in March
Though the economy is showing overall signs of slowing down, employers increased their payrolls by 180,000 in March. This surprise boost in hiring has driven down the unemployment rate to a five-month low of 4.4%, according to the U.S. Department of Labor. In addition, paychecks have increased. The average hourly earnings rose to $17.22 in March. These increases were more than economists expected. Construction companies added 56,000 positions; retailers added nearly 36,000; education and health care expanded by 54,000; leisure and hospitality added 21,000 new jobs; and the government added 23,000.
ABCNews.com – April 6, 2007
Fewer Expect to Add Workers in 2nd Quarter, Survey Says
According to a recent online survey for USA Today and CareerBuilder.com, 29% of hiring managers expect their firms to expand their payrolls in the April-June quarter. Their expectations for hiring in the second quarter are lower than the first quarter report that showed 34% added workers. Additionally, 13% of hiring managers are uncertain about whether or not they would hire in the second quarter, and another 5% plan to cut staff. Experts say this report points toward a slowing economy.
USAToday.com – April 4, 2007
For Minimum Wage, a Veto Means Progress
The Senate passed a budget bill on March 29 that included legislation on increasing minimum wage. President Bush, however, vowed to veto the bill because it mainly focused on Iraq war spending and required the pull out of U.S. troops in Iraq by March 2008. Democrats incorporated the minimum wage legislation into the budget bill to help speed up negotiations between the Democrats in the House and the Senate. This is progress towards a minimum wage hike because the House and Senate can begin negotiations on small business tax breaks to incorporate into the legislation, making way for a new minimum wage bill to be brought forward later.
CNNMoney.com – March 29, 2007
U.S. Manufacturing Expands in March
Manufacturing companies reported that business expanded at a slower-than-expected pace in March while prices for raw materials increased. The manufacturing index fell to 50.9 in March, down from 52.3 in February, according to the Institute for Supply Management (ISM). March’s index was below the analysts expected 51. A reading above 50 indicates growth for the sector. According to the report, companies had more orders for new business, which helped increase production for March. However, prices are increasing for commodities, and with very little growth, analysts are worried.
WashingtonPost.com – April 2, 2007
Factories and Service Sector Report Slower Growth
According to the service sector report by the ISM, the index for the non-manufacturing sector was 52.4 in March, down from 54.3 in February. March’s reading was lower than Wall Street’s expected reading of 54.7. According to economists, this report indicates the lowest level of service sector growth since April 2003, adding to concerns that in the economic growth, U.S. is beginning to slow. In addition, new factory orders grew at a slower-than-expected rate. The Commerce Department reported only a 1% increase in new factory orders.
The New York Times – April 4, 2007
Gasoline Prices Soar 10 Weeks Straight
The national average for gas rose to $2.80 a gallon, up 11.9 cents from a year ago, according to the U.S. Energy Information Administration. Gasoline prices are increasing due to expensive crude oil. Crude oil prices rose almost $10 a barrel in a 10-week period. Consumer demand for motor fuel is also a factor in the increase of gasoline prices.
CNNMoney.com – April 9, 2007
Consumers Power U.S. Economy Through Headwinds
More people consider jobs abundant and consumer confidence is above the 2006 average, according to the Conference Board’s March survey. Rising wages have given consumers the confidence to continue spending, which helps maintain economic growth says study. Added jobs and income growth have softened the slowing manufacturing and housing sectors.
Bloomberg.com – April 5, 2007
Orders for New Homes Tumbled
Orders for new homes fell by 37% last quarter, suggesting an even deeper downturn on U.S. housing, according to D.R. Horton, Inc., the largest U.S. home builder. The second fiscal quarter ended March 31 and fell to 9,983 new homes sold, compared against 15,771 in the same period in the previous year.
MSNBC.com – April 10, 2007
Economic Growth Prospects in U.S. Dim on Subprime Crisis
As the housing recession deepens and businesses cut spending, prospective economic growth for the U.S. in the second half of 2007 is diminishing, according to economists surveyed this month. They report expectations of the economy growing 2.4% for all of 2007, which would be the smallest gain in five years. Growing mortgage defaults and foreclosures, declines in business investment and a decrease in consumer spending may prompt the Federal Reserve to reduce interest rates sooner than expected, the survey reported.
Bloomberg.com – April 10, 2007
Home Prices to Fall for First Time in 2007
According to their latest monthly report, the National Association of Realtors expect a .7% decline in the median price of existing homes sold in 2007 for the first time since they began tracking sales in 40 years. Housing starts are expected to fall 18% to 1.47 million in 2007 before the gradual increase in 2008 says realtors. This is below the 1.8 million housing starts in 2006.
CNNMoney.com – April 11, 2007
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