ICSC-Goldman reports weekly retail sales fell -0.2%, and rose 3.6% on a year-over-year basis. Redbook reports retail sales rose 4.3% on a year-ago basis.
The S&P/Case-Shiller 20-city home price index fell a sharp 0.5% in July, the steepest drop since November 2011. This is the third straight monthly decline. Once again, the numbers from the housing sector show a lot of weakness. On a year-over-year basis, the index is up 6.7%.
The Chicago Purchasing Manager’s Index fell 3.8 points in September to 60.5.
The Conference Board’s consumer confidence index in fell sharply from 92.4 to 86.0 in September.
The State Street Investor Confidence Index rose 1.1 points to 123.9 in September, on rising confidence among European institutional investors.
The Financial Times [subscription] is reporting that the US is poised to become the world’s largest producer of liquid petroleum (oil and natural gas liquids):
US production of oil and related liquids such as ethane and propane was neck-and-neck with Saudi Arabia in June and again in August at about 11.5m barrels a day, according to the International Energy Agency, the watchdog backed by rich countries.
With US production continuing to boom, its output is set to exceed Saudi Arabia’s this month or next for the first time since 1991. [...]
Rising oil and gas production has caused the US trade deficit in energy to shrink, and prompted a wave of investment in petrochemicals and other related industries. [...] It is also having an impact on global security. Imports are expected to provide just 21 per cent of US liquid fuel consumption next year, down from 60 per cent in 2005.
The reason? Fracking. As Walter Russell Mead points out:
With productivity continuing to rise, the United States has a chance to become the single biggest producer of crude oil sometime in the near future. If you had said that a decade ago, you would’ve been laughed at and called a fool. What a difference fracking makes.
Indeed. The “peak oil” pundits were sure we were on the precipice of running out of oil. Now, it seems, the sky is indeed the limit. Which is why it makes little sense, given the state of climate science, that our President is busily engaged via the UN and other domestic agencies, in throttling back one of the most economically viable growth engines the American economy has at the moment (and for the foreseeable future).
Instead of working on a policy to limit future use of hydrocarbons, this White House should be pushing a policy that helps us safely and sustainably exploit these assets for all. Additionally, while petroleum is indeed a global commodity, this level of production would go a long way toward the promise of energy independence in time of crisis. It helps remove oil as a weapon of choice by various less than friendly states and allies of convenience.
Two winners for the US: economic growth and national security.
Instead we get an attempt to establish an new tax based on specious science.
Sort of par for the course, no pun intended.
Personal income rose 0.3% in August, while personal spending rose 0.5%. The PCE Price index was unchanged overall, but up 0.1% at the core level. On a year over year basis, personal income rose 4.3%, spending rose 4.1%, and the PCE Price index rose 1.5% at both the headline and core rate.
The pending home sales index for August fell 1.0% to 104.7, as the housing sector remains stubbornly flat.
The Dallas Fed general business activity index for September rose 3.7 points to 10.8, while the production index rocketed from 6.8 to 17.6.
Apparently we “underestimated” ebola and ISIS, but when it comes to the economy and our well being, our man in the White House did us proud, but we’re just not apt enough to realize that. From Obama’s “60 Minutes” interview:
Steve Kroft: You’ve got midterm elections coming up. Are you going to get shellacked?
President Obama: Well…
Steve Kroft: Or do you think that, I mean, are you optimistic? What are the issues and what are you going to tell the American people?
President Obama: Here’s what I’m going to tell the American people. When I came into office, our economy was in crisis. We had unemployment up at 10 percent. It’s now down to 6.1. We’ve had the longest run of uninterrupted private sector job growth in our history. We have seen deficits cut by more than half. Corporate balance sheets are probably the best they’ve been in the last several decades. We are producing more energy than we had before. We are producing more clean energy than we ever had before. I can put my record against any leader around the world in terms of digging ourselves out of a terrible, almost unprecedented financial crisis. Ronald Reagan used to ask the question, “Are you better off than you were four years ago?” In this case, are you better off than you were in six? And the answer is, the country is definitely better off than we were when I came into office, but now we have to make…
Steve Kroft: Do you think people will feel that?
President Obama: They don’t feel it. And the reason they don’t feel it is because incomes and wages are not going up. There are solutions to that. If we raise the minimum wage, if we make sure women are getting paid the same as men for doing the same work, if we are rebuilding our infrastructure, if we’re doing more to invest in job training so people are able to get the jobs that are out there right now, because manufacturing is coming back to this country. Not just the auto industry that we’ve saved, but you’re starting to see reinvestment here in the United States. Businesses around the world are saying for the first time in a long time, “The place to invest isn’t in China. It’s the United States.”
So there you go. When you ask the salient question (are you better off now than you were 6 years ago), you dumbasses always give the wrong answer. You ARE better off because our King says so. Screw the fact that “income and wages” are not going up, or the labor participation rates is at historic lows or real unemployment is considerably higher than the manipulated number! You’re better off, dammit! And government can fix the wage problem – you know, just raise the minimum wage for heaven sake.
Given that level of cluelessness, are you at all surprised this administration underestimated ISIS and ebola?
The final revision to 2nd Quarter GDP was increased to a 4.6% annualized growth rate. The GDP Price Index was unchanged at 2.1%.
After-tax profits for the 2nd Quarter were revised upwards slightly to 4.6%.
The Reuters/University of Michigan’s consumer sentiment index for September was unchanged at 84.6.
Durable goods orders fell a sharp -18.2% in August, but ex-transportation orders rose a healthy 0.7%. On a year-over-year basis, new orders rose 8.9% overall, while ex-transportation orders rose 7.3%.
The Kansas City Fed Manufacturing Index rose 3 points to 6 in September.
The PMI Services Flash for September was unchanged at 58.5.
Initial weekly jobless claims rose 12,000 to 293,000. The 4-week average fell 1,000 to 298,500. Continuing claims rose 7,000 to 2.439 million.
The Bloomberg Consumer Comfort Index fell -1.8 points to 35.5 in the latest week, which is a 4-month low.
The Fed’s balance sheet rose $9.5 billion last week, with total assets of $4.459 trillion. Reserve bank credit rose $10.1 billion.
The Fed reports that M2 money supply rose by $7.4 billion in the latest week.
The MBA reports that mortgage applications fell -4.1% last week, with purchases down -0.3% and refis down -7.0%.
New home sales for August rose 18.0% to a far better-than-expected 504,000 annual rate. This report is frequently volatile, though, and other housing data has been fairly negative recently.
ICSC-Goldman reports weekly retail sales rose 0.1%, and rose 4.1% on a year-over-year basis. Redbook reports retail sales rose 3.7% on a year-ago basis.
The FHFA House Price Index rose a slight 0.1% in July. On a year-over-year basis, the index is up 4.4%.
The Markit PMI manufacturing index flash for September is unchanged from the August final reading of 57.9.
The Richmond Fed Manufacturing Index rose 2 point to 14 in September.
The Chicago Fed National Activity Index fell to -0.21 in August versus 0.39 in July.
Existing home sales fell a disappointing -1.8% in August to a lower-than-expected annual rate of 5.05 million. On a year-over-year basis, existing home sales are down -5.3%. Nearly all of the recent housing data has been negative, showing a lot of weakness in the housing sector.
The Conference Board’s index of leading indicators rose 0.2% in August, following a strong, revised 1.1% in July.
The Atlanta Fed’s Business Inflation Expectations survey reports that businesses expect 2.1% annual inflation over the next year.