Your Monthly Update in U.S. Economic Trends
U.S. Payrolls Jumped by 166,000 in October
Employers added 166,000 new jobs in October, according to the U.S. Department of Labor, keeping the unemployment rate at 4.7%. The report showed professional and business services, education and health care, leisure and hospitality and government sectors with the highest job gains. These job gains offset job losses in the manufacturing, construction and retail sectors. October saw the highest number of job gains since May 2007, and President Bush announced this was the 50th consecutive month of uninterrupted job growth, the longest span in the nation’s history.
MSNBC.com – Nov. 2, 2007
Services Index Rises in October
The Institute for Supply Management reported an increase in the services sector, signifying a strong economy despite a sluggish housing market. The report showed the non-manufacturing index rose to 55.8 in October, up from 54.8 in September. A reading above 50 indicates growth in a sector, while a reading below 50 shows contraction.
TheBostonGlobe.com – Nov. 6, 2007
Oil Hits Another Record Above $96
The Energy Information Administration (EIA) released a report showing oil prices reached over $96 a barrel. The report also projected a strong worldwide demand of oil, declining supplies in the U.S. and a weakening U.S. dollar. The report showed December delivery for light crude oil increased $2.85 to trade at $96.83 a barrel. Forecasted oil growth worldwide remained unchanged at 1.5 million barrels per day for 2008, according to the EIA. The world currently consumes approximately 85.6 million barrels of oil per day.
CNNMoney.com – Nov. 6, 2007
GDP Growth Brisk as More Jobs Seen
According to the Commerce department, the gross domestic product (GDP), which measures total domestic production within the U.S. borders, increased in the third quarter of 2007 to 3.9%, up from 3.8% in the second quarter. This is the strongest quarterly growth since the first quarter of 2006 posted at 4.8%. Increased consumer spending and strong sales in exports supported the strong GDP. Economists reported that the U.S. has a strong economy, high productivity, low wage pressures and low inflation.
WashingtonPost.com – Oct. 31, 2007
October ISM Manufacturing Index
Growth for manufacturing activity in the U.S. was up in October but at a slower rate than previously posted, according to the Institute for Supply Management (ISM). The report showed the manufacturing index fell to 50.9 in October, down from 52.0 in September. A number above 50 shows expansion, while a number below 50 shows contraction. Analysts reported a declining automobile sector was key to the low ISM manufacturing index reading.
Forbes.com – Nov. 1, 2007
Consumer Confidence More than Forecast
The consumer confidence index fell to 95.6 in October, down from 99.5 in September, according to the Conference’s Board. This is lower than economists anticipated and the lowest reading since October 2005, the report showed. Consumer spending accounts for two-thirds of the economy, and the low number raises concerns among analysts that consumers will slow down on spending in coming months. Economists expect the Federal Reserve to cut interest rates to prevent the economy from declining in all areas.
Bloomberg.com – Oct. 30, 2007
Construction Spending Up 0.3%
The Commerce Department reported a slight increase in construction spending in September. Spending was up 0.3% after decreasing by 0.2% in August. Private builders working on commercial building and government projects on public facilities accounted for most of the increase. The increase was better than the 0.4% increase in construction spending analysts expected.
Reuters.com – Oct. 31, 2007
Slight Boost Reported for Home Sales
New home sales increased by 4.8% in September to 770,000 units, according to the Commerce Department. Economist had forecasted a 2.5% decline. With the recent increase in home sales, chief economist at the National Association of Home Builders, David Seiders, warned that the housing market is not turning around anytime soon. A survey released by the association showed builder confidence fell to an all-time low in early October. The National Association of Realtors reported sales of existing homes fell a record 8% in September, more than analysts expected.
ABCNews.com – Oct. 25, 2007
Productivity Jumps as Wage Pressures Ease
During the third quarter of 2007, worker productivity increased, and labor costs declined, according to the U.S. Department of Labor. The report showed productivity, the amount of output per hour of work, increased by 4.9% from July to September, while unit labor costs, a gauge of inflation, decreased by 0.2%.
TheWallStreetJournal.com – Nov. 8, 2007
Retailers Report Sluggish Sales in October
U.S. retailers posted lower-than-expected sales in October, and according to economists, was a result of higher gas prices and a stalling housing market. The low sales came in all retail businesses including mall-based stores, department stores and upscale stores. In addition to soaring gas prices, higher temperatures also affected winter sales. Thomas Financial, a financial firm, reported that 18 retailers missed sales expectations, while 10 surpassed projections. The report showed that among those who beat expectations, Target showed a 4.1% gain, well above the 2.5% gain analysts anticipated. Wal-Mart saw lower-than-expected sales at a 0.4% gain, below the 1.1% gain analysts expected.
USAToday.com – Nov. 8, 2007
Economic Trends is a publication of Express Services, Inc., Oklahoma City, Oklahoma. © 2007.