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U.S. Economic News

July 5, 2018

U.S. Economic Indicators

The ADP Employment Report shows that private-sector employment increased by 177,000 jobs in June, below expectations of 190,000. The services sector added 148,000 jobs while the goods-producing sector added 29,000 jobs. ADP Report

Initial jobless claims rose 3,000 to 231,000 last week. The four-week moving average increased 2,250 to 224,500. DOL Report

The ISM Non-Manufacturing Index increased 0.5 percentage point to 59.1 in June. The New Orders Index rose 2.7 percentage points to 63.2 while the Employment Index edged down 0.5 percentage point to 53.6. ISM Report

U.S. News

The Wall Street Journal reports that U.S. businesses are preparing for production disruptions as tariffs on imported Chinese goods are set to be enforced on Friday. The U.S. will impose $34 billion in tariffs on imported Chinese machinery, auto parts, and medical devices, and China has stated intentions to retaliate in-kind. WSJ

U.S. Economic News

July 2, 2018

U.S. Economic Indicators

The ISM Manufacturing Index rose 1.5 percentage points to 60.2 in June. The Employment Index fell 0.3 percentage points to 56.0 while the New Orders Index edged down 0.2 percentage points to 63.5. ISM Report

Construction spending rose 0.4% in May to an annualized rate of $1.31 trillion. Private construction rose 0.3% while public construction rose 0.7%. Census Report

U.S. Economic News

June 28, 2018

U.S. Economic Indicators

The third estimate of Q1 GDP indicates that the U.S. economy expanded at an annualized rate of 2.0%, below the second estimate of 2.2%. The reading reflects healthy business investment, mediocre consumer spending, and weak residential investment. BEA Report

Initial jobless claims rose 9,000 to 227,000 last week. The four-week moving average increased 1,000 to 222,000. DOL Report

U.S. News

The Wall Street Journal reports that some economists have recently upgraded their expectations for second-quarter U.S. growth. The upgrade comes amid a smaller-than-expected trade deficit in May, though economists warn that the smaller deficit may be due to companies exporting key goods ahead of expected tariffs. WSJ

Patricia Cohen of the New York Times writes that with unemployment at a multidecade low, firms are competing to hire a shrinking pool of foreign workers. U.S. employers have struggled to fill vacant job postings as the labor market has tightened, and have begun hiring temporary foreign workers, especially for lower-paying service jobs like landscaping and housekeeping. NYT

U.S. Economic News

June 27, 2018

U.S. Economic Indicators

New orders of manufactured durable goods edged down 0.6% in May after falling 1.0% (revised) in April, but are up 9.9% year-over-year. Excluding transportation, new orders slipped 0.3% (up 8.2% Y/Y). Census Bureau Report

The U.S. Census Bureau Advance Economic Indicators Report shows that the goods deficit narrowed to $64.8 billion in May from $67.3 billion in April. Meanwhile, wholesale inventories rose 0.5% and retail inventories rose 0.4%. Census Bureau Report

The National Association of Realtors pending home sales index edged down 0.5% in May (down 2.2% Y/Y). NAR says that the spring buying season was lackluster, as demand remained healthy but supply did not pick up in response. NAR Report

U.S. News

The Wall Street Journal reports that the Trump administration has decided to abandon efforts to impose new limits on Chinese investment in the U.S. The move comes after a sharp selloff in equity markets after reports came out that the administration was considering invoking executive authority to impose the new restrictions. WSJ

U.S. Economic News

June 25, 2018

U.S. Economic Indicators

The Chicago Fed National Activity Index fell from +0.42 (revised) in April to -0.15 in May. The production and personal consumption & housing components made negative contributions while the employment and sales components contributed positively. Chicago Fed Report

New home sales rose 6.7% to a seasonally adjusted annual pace of 689,000 in May, and are 14.1% above the May 2017 rate. The median sales price declined to $313,000 and the inventory of new homes decreased to 5.2 months at the current sales rate. Census Bureau Report

U.S. News

The Financial Times reports that the Trump administration plans to further restrict Chinese investment in key high-tech sectors in the U.S. Although Chinese foreign direct investment in the U.S. has already plunged more than 90 percent in the first half of this year compared to the same period of 2017, the White House is expected to unilaterally declare an “economic emergency” and establish new limits on Chinese investment. FT

Josh Mitchell of the Wall Street Journal writes that student-loan forgiveness programs may end up posing a risk to some borrowers who are unable to cover the additional tax expense. Mitchell points out that the IRS treats any forgiven debt as income, so if a borrower has a significant balance of their loan forgiven they may be unable to pay the additional taxes. WSJ