Third Quarter Growth, Strongest in Two Years
The gross domestic product (GDP) is expected to grow by 3.2% in the third quarter of 2009 after falling at an annual rate of 0.7% in the second quarter, according to a survey of top economists in the Blue Chip Economic Indicators October Survey. Key factors in bettering GDP performance included an increase in personal consumption expenditures, residential investment, and a reduced rate of business inventory, the report showed. Economists forecast the GDP to grow by 2.4% in the fourth quarter of 2009 and by 2.5% in 2010.
Reuters.com – Oct. 10, 2009
Manufacturing Activity Expands
The nation's manufacturing index fell to 52.6 in September, down from 52.9 in August, according to the ISM. Although the index fell slightly, the reading above 50 indicates expansion in a sector. This is the second month in a row the manufacturing index grew as government stimulus continues to increase production and new orders in the sector, the ISM reported. In September, 13 out of 18 industries in the manufacturing sector experienced growth. Even though the sector expanded at a slower rate in September, experts believe manufacturing has rebounded.
FinancialTimes.com – Oct. 1, 2009
Private Sector Losing Jobs
The private sector cut 254,000 jobs in September, down from a revised 277,000 job cuts in August, according to ADP, an automatic data processing company. Economists had anticipated a loss of 200,000 jobs. The report showed the decline in job cuts was consistent across all sectors, with small businesses (employers with less than 50 workers), experiencing a loss of 100,000 jobs. The survey is based on payroll data from 500,000 U.S. businesses.
CNNMoney.com – Sept. 30, 2009
Consumer Confidence Dips in September
The consumer confidence index fell in September to 53.1, down from a revised reading of 54.5 in August, according to the Conference Board. The expectations index, which measures consumer outlook on future economic conditions, fell to 73.3 in September, down from 73.8 in August. Consumers remain apprehensive about their incomes as well as their short-term outlook on the economy. With the holiday season approaching, signs do not look positive. The present situation index, a measure of consumers’ opinions on current economic conditions, decreased to 22.7, down from 25.4 in August. The monthly consumer confidence survey is based on 5,000 U.S. households.
The Conference Board – Sept. 29, 2009
Factory Orders Fall Unexpectedly in August
New orders to U.S. factories fell by 0.8% in August, despite the increase of 0.7% economists had anticipated, according to the Commerce Department. The decline followed four consecutive months of gains and is the biggest drop in five months. The drop in new orders is a reflection of a struggling economy, and experts worry factories will remain under pressure due to weak consumer spending.
The Associated Press – Oct. 2, 2009
Cost of Health Benefits Accelerate
The Kaiser Family Foundation and the Health Research & Educational Trust released their findings in their eleventh annual survey on health benefits. The report showed premiums for employer-sponsored health insurance rose to $13,375 for family coverage, up 5% from 2008. Health care premiums have risen 131% in the past 10 years and continue to rise. Now, employers are shifting more costs to workers, resulting in a 128% increase in workers’ contributions to premiums, according to the survey. In 2008, workers paid 17% of the premium for individual coverage and 27% for family coverage.
WorkforceManagement.com – Sept. 15, 2009
Senate Committee Approves Health Reform Bill
The Senate Finance Committee approved a massive health care reform bill on October 13. The committee voted 14 to nine in favor of the reform. Supporters say this bill will bring change to health care and lower costs for millions of Americans who cannot afford coverage. However, people against the bill argue that it will raise taxes and create higher health care costs for middle-class families. The bill did not include a public or government-run health plan that would offer another option to private health insurance coverage.
Society of Human Resource Management – Oct. 13, 2009
September 2009
The unemployment rate increased to 9.8% in September, up from 9.7% in August. Employers cut 263,000 jobs in September, up from 216,000 job losses in August. The largest declines were seen in manufacturing, construction, retail trade, and government. Learn more from the most recent employment report from the Bureau of Labor Statistics. View the unemployment rate in your state.
Major Industry Employment:
• Construction: - 64,000
• Manufacturing: - 51,000
• Retail Trade: - 39,000
• Professional & Business Services: - 8,000
• Educational & Health Services: + 3,000
• Leisure & Hospitality: - 9,000
• Government: - 53,000
Employment Trends is a publication of Express Services, Inc., Oklahoma City, Oklahoma. © 2009.