Your Monthly Update in U.S. Economic Trends
Factory Orders Up 1.5%
According to the Commerce Department, orders for manufactured goods increased by 1.5% in November, the largest increase since a 3.4% rise in July. Nondurable goods orders rose 3%, while durable goods fell by 0.1%, the report showed. The rise in orders to U.S. factories was driven by higher petroleum prices.
WashingtonPost.com – Jan. 3, 2008
U.S. Consumer Confidence Index Rose
Consumer confidence increased to 88.6 in December, up from a revised 87.8 in November, according to the Conference Board. This is the first gain in five months. Economists had forecasted consumer confidence to drop to 86.5. The expectations index increased to 75.5 in December, up from 69.1, the report showed. The expectations index measures consumers’ thoughts on future economic conditions.
Bloomberg.com – Dec. 27, 2007
Service Sector Grows in December
The non-manufacturing index was 53.9 in December, according to the Institute for Supply Management. A reading above 50 indicates expansion, while a reading below 50 shows contraction. The report showed the new orders index registered at 53.5 in December, up from 51.1 in November, and the employment index was at 52.1 in December, up from 50.8 in November.
Forbes.com - Jan. 4, 2008
Retailers Post December Sales
Retail sales were weaker than analysts expected; however, expect stronger sales in January when retail stores benefit from consumers redeeming gift cards. According to Thomson Financial, a financial firm, 19 retailers missed their December projections, nine beat forecasts, and one met expectations. Apparel sellers and department stores were hit particularly hard, while stores like Wal-Mart Inc. exceeded expectations as shoppers traded down to less expensive stores.
WallStreetJournal – Jan. 15, 2008
U.S. Jobless Rate Hits Two-Year High
The U.S. Department of Labor released an employment report indicating the nation’s unemployment rate increased to 5% in December, up from 4.7% in November. According to the report, employers, both private and government, added 18,000 workers to their payrolls in December. This is the lowest increase since August 2003. Experts say employment conditions are weakening due to a declining housing market and a tightening credit crunch. Economists expected employers to add 70,000 jobs in December for the unemployment rate to increase slightly to 4.8%. According to a White House correspondent, the 5% unemployment rate is low by historic standards. Overall in 2007, U.S. employers added 1.33 million jobs and the unemployment rate averaged 4.6%.
CBSNews.com – Jan. 4, 2008
Bernanke Signals Deeper Rate Cuts
Federal Reserve Chairman Ben Bernanke promised to cut interest rates again in order to keep the U.S. economy on track. He stated he did not believe the economy was headed for a recession. Economists are now forecasting that interest rates will be cut by half a percentage point from 4.25%, increasing their predictions that rates would see a quarter point cut.
Bloomberg.com – Jan. 11, 2008
Judge Delays Decision on DHS No-Match Rules
The Department of Homeland Security’s No-Match rules have been temporarily delayed by a federal court judge who on Dec. 14, 2007 agreed to uphold a ruling by Charles R. Breyer, a U.S. District Court judge for Northern California. The No-Match rules would require employers to fire employees whose social security numbers don’t match those in government records. According to the Society for Human Resource Management (SHRM), labor, business and civil rights groups have banned together to block the regulations from taking affect. This temporary order will stay in place until March 24, 2008.
SHRM.com – Dec. 7, 2007
House Votes to Expand FMLA
The Senate voted to approve the National Defense Authorization Act (H.R. 1585) on Dec. 14, 2007. The House of Representatives showed overwhelming support by voting 90-3 in favor of the act just two days earlier. This is the first amendment to the Family and Medical Leave Act (FMLA) since 1993, according to SHRM. The bill has been handed to the White House, and according to Washington officials, President Bush is expected to sign the legislation into law. The provision of the FMLA Act will allow immediate family members 26 weeks of protected leave to provide care to wounded U.S. soldiers and to family members of military reservists called to active duty.
SHRM.com – Dec. 14, 2007
OSHA Issues Final Rule On Personal Protection Equipment
A new rule has been issued by the U.S. Occupational Safety and Health Administration (OSHA), requiring employers to pay for and provide personal protective equipment to all employees exposed to safety and health hazards, according to HR Magazine. There are, however, a few exceptions to the final rule, noting that employers don’t have to pay for safety equipment such as work boots, prescription safety glasses and goggles, and any other weather-related clothing. Under the new rule, OSHA hopes to reduce the number of occupational injuries by 21,000 each year.
HRTools.com – January 2008
Economic Trends is a publication of Express Services, Inc., Oklahoma City, Oklahoma. © 2008.