U.S. Economic News

August 31, 2017

U.S. Economic Indicators

Real disposable personal income and real personal consumption expenditures (PCE) both rose 0.2% in July. The PCE and the core price indices both edged up 0.1% (each up 1.4% Y/Y). BEA Report

The National Association of Realtors pending home sales index fell 0.8% to 109.1 in July (down 1.3% Y/Y).  NAR says that “staggering inventory woes” continue to stall contract activity as affordability worsens in many key markets.  NAR Report
 
Initial jobless claims rose 1,000 to 236,000 last week. 
 The four-week moving average fell 1,250 to 236,750. DOL Report

U.S. News

Patricia Cohen of the New York Times writes that despite Republican efforts to incentivize American firms to repatriate profits held abroad, there is often little effect on real investment as a result of repatriation. Cohen argues that profits brought back to the U.S. from overseas are largely used to pay dividends to shareholders or buy back stock, not to reinvest. NYT