Economic Statistics for 2 Aug 13
Here are today’s statistics on the state of the economy:
A disappointing 162,000 net new jobs were created in July, but the Unemployment rate declined to 7.4%. The working age population increased by 204,000 last month, yet the labor force declined by 37,000. So, "unemployment" fell. Yay! In the real world, the labor force participation rate fell to the historic low of 63.4% again. Also, the average work week decreased by 0.1 hour in July to 34.4 hours, while average hourly compensation dropped by 2 cents to $23.98. Of the new jobs created last month, a quarter were in restaurant or food services. Using the historical average level of labor force participation, the real unemployment rate is 11.58%.
Personal income rose 0.3% in June while consumer spending jumped 0.5%. The overall PCE price index rose a sharp 0.4%, while the core rate rose 0.2%. On a year-over-year basis income rose 3.1% but spending rose 3.3%, while the PCE price index is up 1.3% and the core PCE is up 1.2%.
Factory orders rose 1.5% in June, entirely on transportation orders. Ex transportation orders fell -0.4%.