Last Week in the News
Fueled by surging energy prices, the closely watched Consumer Price Index (CPI) shot up 0.6% in March, the biggest increase since a similar rise in April 2006. However, core inflation -- which excludes volatile energy and food prices -- rose 0.1% in March, the smallest increase in three months, and better than the 0.2% rise Wall Street had expected. Inflation for the first quarter of 2007 was 4.7%, far above the 2.5% increase for all of 2006.
The Conference Board said its Index of Leading Economic Indicators climbed a tepid 0.1% to 137.4 in March, as analysts had expected. The latest reading reverses two straight months of declines. The index is designed to forecast economic activity over the next three to six months.
Retail sales rose 0.7% in March, up from a 0.5% gain in February. It was the best showing since a 1.1% rise in December, the Commerce Department reported April 16. Analysts had predicted a 0.8% increase.
Construction of new homes edged up 0.8% in March, the second straight monthly rise, the Commerce Department reported April 17. Applications for new building permits also rose by 0.8% in March, the first advance in three months, providing a glimmer of hope that the worst of the housing downturn might be over.
For the week ending April 19, interest rates on 30-year and 15-year fixed-rate mortgages declined, remaining well below year-ago levels, Freddie Mac said April 19.
This week look for updates on existing and new home sales on April 25.
Monday, April 23, 2007
Tuesday, April 17, 2007
Economic Update for 4/16/2007
Last Week in the News
American consumers lost confidence for the third straight month, with the Reuters/University of Michigan preliminary Consumer Sentiment Index, released April 13, hitting an eight-month low of 85.3 in April from March's 88.4. Consumers responding to the survey said they expect inflation to rise.
The March Producer Price Index (PPI) -- which measures prices before they reach consumers -- rose 1 percent after February's 1.3 percent increase, the Labor Department reported April 13. March's jump was slightly ahead of a 0.7 percent increase predicted by experts, who attributed March's jump to rising energy and food costs. Meanwhile the core PPI, which excludes food and energy prices, was unchanged.
Contrary to economists' predictions of a widening U.S. trade deficit, the gap actually narrowed in February to $58.4 billion from January's $58.9 billion, the Commerce Department reported April 13. Economists had predicted the deficit would widen in February to $60 billion. Imports of goods and services fell 1.7 percent to $182.4 billion and exports declined by 2.2 percent to $124 billion.
Imports from China fell to their lowest level since May 2006, with the trade gap dropping to $18.4 billion in February from January's $21.3 billion.
This week look for the Census Bureau's retail sales report April 16, and updates on the Consumer Price Index, housing starts and housing permits April 17.
American consumers lost confidence for the third straight month, with the Reuters/University of Michigan preliminary Consumer Sentiment Index, released April 13, hitting an eight-month low of 85.3 in April from March's 88.4. Consumers responding to the survey said they expect inflation to rise.
The March Producer Price Index (PPI) -- which measures prices before they reach consumers -- rose 1 percent after February's 1.3 percent increase, the Labor Department reported April 13. March's jump was slightly ahead of a 0.7 percent increase predicted by experts, who attributed March's jump to rising energy and food costs. Meanwhile the core PPI, which excludes food and energy prices, was unchanged.
Contrary to economists' predictions of a widening U.S. trade deficit, the gap actually narrowed in February to $58.4 billion from January's $58.9 billion, the Commerce Department reported April 13. Economists had predicted the deficit would widen in February to $60 billion. Imports of goods and services fell 1.7 percent to $182.4 billion and exports declined by 2.2 percent to $124 billion.
Imports from China fell to their lowest level since May 2006, with the trade gap dropping to $18.4 billion in February from January's $21.3 billion.
This week look for the Census Bureau's retail sales report April 16, and updates on the Consumer Price Index, housing starts and housing permits April 17.
Monday, April 2, 2007
Economic Update for 4/2/2007
Consumer spending rose 0.6% in February, the best showing since a 0.7% jump in December, the Commerce Department reported March 30. The gain was double what analysts had expected, which should help alleviate recession fears fueled by a slump in housing and the domestic auto industry.
Personal income also was up 0.6% in February, which followed a 1% surge in January. Even with the rise in income, the savings rate remained at a negative 1.2% in February, the 23rd consecutive month the savings rate has been in negative territory.
Sales of new homes dropped 3.9% in February to a seasonally adjusted annual rate of 848,000 units, the slowest pace in nearly seven years, the Commerce Department said March 26. Meanwhile, the median price of a new home fell to $250,000 in February, down 0.3% from a year ago.
Orders to factories for durable goods -- big-ticket items expected to last three or more years -- increased 2.5% in February. Even with the rebound from January's 9.3% drop, the gain was smaller than the 3.5% gain expected by Wall Street.
On March 30, oil prices reached $66.55 a barrel on the New York Mercantile Exchange, the highest level in six months. Concern over rising gasoline prices helped undermine consumer confidence, as the Conference Board's Consumer Confidence Index fell from 111.2 in February to 107.2 in March. The March index was the lowest since November when the reading was 105.3.
This week look for updates on factory orders on April 4 and unemployment on April 6.
Personal income also was up 0.6% in February, which followed a 1% surge in January. Even with the rise in income, the savings rate remained at a negative 1.2% in February, the 23rd consecutive month the savings rate has been in negative territory.
Sales of new homes dropped 3.9% in February to a seasonally adjusted annual rate of 848,000 units, the slowest pace in nearly seven years, the Commerce Department said March 26. Meanwhile, the median price of a new home fell to $250,000 in February, down 0.3% from a year ago.
Orders to factories for durable goods -- big-ticket items expected to last three or more years -- increased 2.5% in February. Even with the rebound from January's 9.3% drop, the gain was smaller than the 3.5% gain expected by Wall Street.
On March 30, oil prices reached $66.55 a barrel on the New York Mercantile Exchange, the highest level in six months. Concern over rising gasoline prices helped undermine consumer confidence, as the Conference Board's Consumer Confidence Index fell from 111.2 in February to 107.2 in March. The March index was the lowest since November when the reading was 105.3.
This week look for updates on factory orders on April 4 and unemployment on April 6.
Subscribe to:
Posts (Atom)
