The Bureau of Labor Statistics reports that 248,000 net new jobs were created in September, with the unemployment rate falling to 5.9%. Average weekly hours rose to 34.6 hours from 34.5 hours, while average hourly income was unchanged at $20.67. All good so far. However, 97,000 people left the labor force last month, sending the labor force participation rate down -0.1% to 62.7%, the lowest since February of 1978. That means that 8,609,000 people who would have jobs with a historical participation rate average of 66.2%, do not now have jobs. In real terms, the unemployment rate is actually 10.87%, based on the historical labor force participation rate.
The US trade deficit fell by $400,000 to $-40.1 billion in August.
The Markit PMI services index for September fell -0.6 points to 58.9.
The ISM non-manufacturing index fell -1 point to 58.6 in September.
The JP Morgan Global Composite PMI fell -0.2 points to 54.9, while the Services PMI fell -0.2 points to 55.3 in September.
Challenger’s count of layoff announcement totals 30,477 in September, the lowest since June 2000.
Gallup’s U.S. Payroll to Population employment rate fell a slight -0.1% to 44.8% in September.
Initial weekly jobless claims fell 8,000 to 287,000. The 4-week average fell 3,750 to 294,750. Continuing claims fell 45,000 to 2.441 million.
The Bloomberg Consumer Comfort Index fell -0.7 points to 34.8 in the latest week.
The Fed’s balance sheet fell $-8.8 billion last week, with total assets of $4,493 trillion. Reserve bank credit fell $-9.9 billion.
The Fed reports that M2 money supply fell by $-10.0 billion in the latest week.
September motor vehicle sales fell a sharp -6.3% to a worse-than-expected 16.4 million annual rate. The domestic sales rate was 13.2 million annualized. September faced a tough comparison to a very strong August, but sales were expected to be stronger.
ADP’s estimate for private payroll growth for September is 213,000.
Markit’s PMI Manufacturing Index for September fell just -0.4 points to a still-strong 57.5.
The ISM Manufacturing Index fell -2.4 points to 56.6.
Construction spending fell -0.8% in August after a 1.2% increase in July. Market expectations were for a 0.5% increase. On a year-over-year basis, spending rose 5.0%.
The J.P. Morgan Global Manufacturing PMI edged down -0.4 points to a still-positive 52.2.
Gallup’s US Job Creation Index reached a six-year high of 30 in September.
The MBA reports that mortgage applications fell -0.2% last week, with purchases unchanged, but refis down -0.3%.
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.