Free Markets, Free People
Economic releases for 1 Sep 11
Today’s economic stats releases show weakness in the economy remains, as the numbers are lackluster, overall.
Retail sales are reported by chain stores today, and they’re looking a bit weak. Some stores blamed Hurricane Irene for lower sales results than in July, though others point to a generally tough economic environment for shoppers.
Initial claims for unemployment fell to 409,000, but the the four-week average is worse at 410,250 which is up for the second week in a row and compares to 408,250 at the end of July. The Verizon strike caused a bit of a bump over the last two weeks, which is now smoothing out, so we’ll get a better idea of the trend in the next few weeks. Overall, though, the trend looks fairly flat, which is disappointing.
The revision to Productivity and Labor Costs indicate that productivity fell by -0.7% while unit labor costs rose 3.3% in the second quarter. The revisions show that the economy is still weak, and hiring is probably not an attractive option for firms.
The Bloomberg Consumer Comfort Index for the August 27 week slipped to -49.1 from the last report of -47.
The ISM Manufacturing Index declined very slightly to 50.6 from last month’s 50.9. A reading above 50 generally indicates an economic expansion, but a reading of less than 51 isn’t much of an expansion.
Construction Spending in July fell -1.3%, and is down -4.7% from last August. Last month’s spending, however, was revised sharply upwards from an increase of 0.2% to 1.6%. The overall trend is upwards, too, compared to monthly losses of –17% in 2009.