Category: US Economy
The analysis published under this category are as follows.
Friday, October 08, 2010
Fantastic Economic News, U.S. Nonfarm Payrolls Decline by 95,000 / Economics / US Economy
By: Mike_Shedlock
Today we have fantastic news from the BLS that the economy shed 95,000 jobs, far weaker than the economists' consensus expectation of a mere 5,000 drop.
Moreover, part-time workers for economic reasons increased by a whopping 612,000 workers, much higher than an recent numbers and also higher than a year ago. The effect of rising part-time work is the effective unemployment rate shot up .4% to 17.1%
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Saturday, October 02, 2010
ISM Manufacturing Survey Points to Slowing U.S. Economy in Q3 / Economics / US Economy
By: Asha_Bangalore
The composite ISM manufacturing index edged down to 54.4 in September from 56.3 in the prior month. Indexes tracking production (56.5 vs. 59.9 in August), new orders (51.1 vs. 53.1 in August), employment (56.5 vs. 60.4 in August), and vendor deliveries (53.3 vs. 56.6 in August) declined, while the inventories index rose to 55.6 from 51.4 in August. Readings above 50.0 denote an expansion in activity. Although the levels of each of the sub-components of the composite index continue to hold above 50, the declines registered in September, excluding the gain in the inventories index, imply that factory activity advanced at a slower pace in September compared with August.
Saturday, October 02, 2010
They Say the U.S. Recession Ended Over a Year Ago / Economics / US Economy
By: Hans_Wagner
The National Bureau of Economic Research (NBER) told us the recession ended June 2009, when economic activity stopped going down and turned up.
The problem is most people are still worried about their jobs, if they have one and the lackluster performance of the recovery so far. With unemployment fluctuating between 9.4 and 10.1%, and the underemployment rate near 17%, it is no wonder the news from the NBER received such skepticism. Even the Federal Reserve said consumer demand, bank lending and housing remain weak, especially for this stage of the recovery.
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Wednesday, September 29, 2010
U.S. Unemployment Rate Could be Higher in September vs. August / Economics / US Economy
By: Asha_Bangalore
The Conference Board's Consumer Confidence Index slipped to 48.5 in September from 53.2 in August. The September reading is the lowest since February 2010 (46.4). The historical low is 25.3, registered in February 2009. The University of Michigan Consumer Sentiment index also declined in September (66.6 vs. 68.9 in August). The decline in consumer outlook appears to be tied to the prevailing conditions in the job market. Although the recent recession officially ended in June 2009 and real GDP has posted growth for four straight quarters, the 9.6% unemployment rate in August is an elevated level playing an important role in the pessimistic outlook of consumers.
Tuesday, September 28, 2010
Q.E. Economic Engine Revs But Car Goes Nowhere / Economics / US Economy
By: Mike_Shedlock
The economy is stuck in neutral so stepping on the QE gas pedal is highly unlikely to accomplish much except increase the noise level. Yet, the philosophy at the Fed seems to be, if gas doesn't work, give the engine more gas.
So the engine continues to rev louder and louder, and treasury yields drop, but that does not and will not put Americans back to work.
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Monday, September 27, 2010
Generating Economic Optimism, Put On a Happy Face? / Economics / US Economy
By: Douglas_French
Since two years of zero interest rates, $800 billion in fiscal stimulus, and the bailout of any business remotely viewed as systemically important haven't resuscitated the dead economy, now the tonic suggested is optimism. American business owners and consumers need to quit getting their daubers down and keep the sunny side up.
Saturday, September 11, 2010
Obama Walking in Reagan's Shoes / Politics / US Economy
By: Mike_Whitney
The Fed's Beige Book, which was released on Wednesday, provides a sobering look at an economy that is sputtering-along on empty. Nearly all the districts reported slower activity amid "widespread signs of deceleration". The stimulus-fueled rebound, which powered GDP above 5% two quarters earlier, has progressively dissipated slashing growth to an anemic 1.6%. As underemployment has soared to 16.5% and deflation has continued to tighten its grip, all talk of a "recovery" has ceased and policymakers have grown more tentative, unwilling to do anything that might cost them votes in the upcoming midterm elections.
Saturday, September 11, 2010
U.S. Wholesale Inventories Rise More than Expected; But Where's the Demand? / Economics / US Economy
By: Mike_Shedlock
Rising inventories to meet rising demand is one thing, rising inventories in the face of weak or falling consumer demand is another. On the inventory side of the equation, Wholesale Inventories in U.S. Rose More Than Forecast
Friday, September 10, 2010
Meet the New Goldilocks Economy / Economics / US Economy
By: Andy_Sutton
Back in the glory days of 2008, the mainstream press, political pundits, and various government officials talked about the idea of the Goldilocks economy. Not too hot, not too cold, but just right. Of course the analogy ended when the bears chased Goldilocks out of the cottage. While the same outlets aren’t trotting out the fairy tale this time around, it is clear that the US has hit phase two of the Goldilocks economy and it is my guess that most folks will like this one even less than the first.
Saturday, September 04, 2010
U.S. Government Policy Caused America's Unemployment Crisis / Economics / US Economy
By: Washingtons_Blog
The unemployment rate has risen again for the the first time in 4 months. I predicted a growing, long-term unemployment problem last year.
Indeed, even after the government plays with the numbers to make them look better (using inaccurate birth-death models and other tricks-of-the-trade), this is how the current jobs downturn compares with other post-WWII recessions:
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Friday, September 03, 2010
Weighing In On the Week’s Economic Reports! / Economics / US Economy
By: Sy_Harding
The stock market this week is saying I was wrong in warning in last week’s column that we might already be back in recession in this, the third quarter of the year.
I have to agree that the alarming trend of worsening economic reports since May seemed to turn a bit more mixed with this week’s reports.
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Friday, September 03, 2010
U.S. Unemployment Rises to 9.6%, A Look Beneath the Surface / Economics / US Economy
By: Mike_Shedlock
This morning the BLS reported a decrease of 64,000 jobs. However, that reflects a decrease of 114,000 temporary census workers.
Excluding the census effect, government lost 7,000 jobs. Were the trend to continue, this would be a good thing because Firing Public Union Workers Creates Real Jobs.
Wednesday, August 25, 2010
U.S. Unable to Remain World Stronghold on Consumer Demand / Economics / US Economy
By: Pravda
American consumers are not in a hurry to spend, production remains weak, and conversations about the risk of deflation become more acute. It is likely that the U.S. government will prepare new incentive programs that will inflate national debt. However, the experts believe it will not affect the dollar in a negative way.
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Tuesday, August 24, 2010
The Importance of Business Start-ups and When Did Thrift Become Bad? / Economics / US Economy
By: John_Mauldin
This weekend I wrote about the problems of being an entrepreneur in our Muddle Through Economy. I would like to follow that up with two brief (but somewhat controversial) essays on two aspects of starting up small businesses. The first, by Vivek Wadhwa, points out that start-ups account for all of the net new jobs, and is a summary of a paper from the Kaufman Foundation. (You can read the 12 page paper at
www.kauffman.org/..)
Monday, August 23, 2010
Mainstream Economists Fail to Make Arrive at Logical Conclusions on U.S. Debt and Consumer Spending / Economics / US Economy
By: Peter_Schiff
In a CNBC debate last week, former Labor Secretary Robert Reich presented a set of contradictory beliefs that unfortunately reflect the conventional wisdom of modern economists. In a discussion with Wall Street Journal columnist Stephen Moore, Reich correctly and comprehensively listed the reasons why American consumers could spend so lavishly before the crash of 2008 and why they can no longer keep up the pace. But instead of making the logical conclusion that former levels of spending were unsustainable and that spending should now reflect current conditions, he advocated that government take on additional debt so that tapped out consumers can spend like they used to.
Thursday, August 19, 2010
U.S. Weekly Unemployment Claims Hit 500,000 Bearing Every Economist's Forecast / Economics / US Economy
By: Mike_Shedlock
Once again the pile of overoptimistic economist estimates continues to mount. Today, weekly unemployment claims hit 500,000 exceeding every forecast. This is (at minimum) the 4th time since March every economist was overly optimistic regarding unemployment claims. Nicely done guys.
Thursday, August 19, 2010
How to Protect Your Wealth From U.S. Debt Economic Stagnation Japan Style / Economics / US Economy
By: Money_Morning
Martin Hutchinson writes:
Grim unemployment figures, growing worries about crushing debt loads and the apparent absence of any inflation are causing many investors to ask a tough question: Is the U.S. economy catching the "Japan disease," the dreaded and dreadful malaise that has left the onetime Asian powerhouse in a stagnant state since 1990?
Wednesday, August 18, 2010
18 Signs That America Is Rotting Right In Front Of Our Eyes / Economics / US Economy
By: Pravda
Sometimes it isn't necessary to quote facts and figures about government debt, unemployment and the trade deficit in order to convey how badly America is decaying. The truth is that millions of Americans can watch America rotting right in front of their eyes by stepping out on their front porches. Record numbers of homes have been foreclosed on and in some of the most run down cities as many as a third of all houses have been abandoned.
Wednesday, August 18, 2010
U.S. Bank Credit Increases a Healthy 8.3%, But One Month Does Not Make a Trend / Economics / US Economy
By: Paul_L_Kasriel
In July, for only the second time in the past 21 months, U.S. commercial bank total credit (loans and securities) increased (see Chart 1). And it was a healthy increase at 8.3% annualized. Obviously, we do not know whether this is the beginning of an upward trend in bank credit. But if it is, then we feel a lot more confident about our 2011 real GDP forecast, which has the economy's growth rate picking up. The primary assumption underlying our forecast of faster real GDP growth in 2011 is a resumption in the growth of bank credit.
Tuesday, August 17, 2010
Recession Batters State Budgets Which Could Slow Economic Recovery / Economics / US Economy
By: John_Mauldin
There were a lot of questions last week when I wrote about public pensions. So for this week’s Outside the Box, I offer you some more information about how bad the state deficit situation is, and for your specific state. States are having to cut more than 1% of national GDP in fiscal 2011, as federal stimulus money is slowly drying up. And that is just states. Local municipalities and schools have a similar problem. And then add on the possibility of the Bush tax cuts going away and that is a very serious situation. It is why I am so concerned and vocal about the need for the Bush tax cuts to be extended for at least one year until the economy is growing above stall speed. The headwinds from cities and states are severe, as you can see.