Category Archives: U.S. Economic News

[06/06/14]  Jobs numbers released by The Bureau of Labor Statistics Friday morning were better than what economists were predicting, leading the markets to pick up steam in early trading. Non-farm payrolls added 217,000 jobs in May, slightly above the 215,000 that economists were expecting. The unemployment rate, which is drawn from a different survey of households, remained unchanged at 6.3% and is 0.1% better than the 6.4% consensus. The labor force participation rate also remained unchanged from the 62.8% rate reported for April, the lowest rate in decades. The BLS said Friday that the participation rate has shown no clear trend since this past October but is down by 0.6% over...

[05/16/14]  Consumer confidence unexpectedly fell in May from a nine-month high, showing Americans are being shaken by rising grocery bills and elevated fuel costs. The Thomson Reuters/University of Michigan preliminary sentiment index decreased to 81.8 from 84.1 in April. The median projection in a Bloomberg survey of economists called for a gain to 84.5. Food prices have risen and the cost of gasoline has held near its highest level of the year, making buyers less secure in their finances. Falling unemployment, rising home prices and near-record stock indexes could provide support for sentiment, giving Americans the wherewithal to boost the spending that makes up 70 percent of the economy. “We’re...

[05/13/14]  Retail sales barely rose in April, tempering hopes of a sharp acceleration in economic growth in the second quarter.

The Commerce Department said on Tuesday that retail sales edged up 0.1 percent last month, held back by declines in receipts at furniture, electronic and appliance stores, as well as restaurants and bars, and online retailers.

Retail sales, which account for a third of consumer spending, rose by a revised 1.5 percent in March. That was the largest increase since March 2010 and reflected pent-up demand after a brutally cold winter.

“You really had a spectacular March,” said Guy Berger,...

[05/12/14]  The stock market returned to record levels on Monday as investors regained their appetite for riskier stocks. After beating down Internet and small companies for two months, investors decided that those stocks had fallen enough. Among the big gainers were Twitter and Facebook, which plunged in March and April. The Russell 2000, an index composed of small companies, climbed the most in two months. Investors have been more cautious this year than last. They've favored big, less volatile stocks that pay rich dividends because of concerns about the outlook for the economy. Utility and energy companies have been among the beneficiaries of this trend and have outperformed...

[04/04/14]  Companies powered the U.S. job market past a milestone in March as private employment exceeded the pre-recession peak for the first time, showing the kind of progress Federal Reserve officials look for to maintain their current policy course. Payrolls excluding government agencies rose by 192,000 workers after a 188,000 gain in February that was larger than first estimated, the Labor Department reported today in Washington. That brought the job count to 116.1 million, beating the January 2008 high of 116 million. The jobless rate held at 6.7 percent even as almost half a million people entered the workforce. Retailers, construction companies and health-care providers were among those taking on additional staff as...

[03/19/14]  The Federal Reserve will probably end its massive bond-buying program this coming fall, and could start to raise interest rates around six months later, Fed Chair Janet Yellen said on Wednesday. That's a somewhat more aggressive path toward higher rates than some investors had anticipated, and both U.S. stocks and bonds slumped. Futures traders now are pricing in a first rate hike as soon as April 2015. "She certainly moved (the timetable) up a little bit and I don't think the market was expecting that at all because she is widely viewed as being more on the dovish side of the aisle than she is on the...

[03/13/14]  The first signs of an improving economy and better weather are here, as the US retail sales advanced by 0.3 percent in February against economists’ expectations of 0.2 percent, according to statistics reported by the Commerce Department in Washington on Thursday. The 0.2 percent median forecast had been of 84 economists that had been surveyed by Bloomberg. A similar survey led by Reuters had proven the same expectations. The positive retail sales indication is a huge jump from the 0.6 drop in January, with nine out of 13 major categories showing increases. Harsh weathers with bitter cold and snow during December 2013 and January 2014 had impacted economic activity...

[03/07/14]  Flat U.S. trade in January offered the latest sign the economy is struggling to fire on all cylinders, as consumers at home and abroad spend cautiously. The U.S. trade deficit widened 0.3% to a seasonally adjusted $39.1 billion in January from a month earlier, the Commerce Department said Friday. Exports climbed 0.6% to $192.5 billion. Imports rose 0.6% to $231.6 billion. The report reflects soft demand abroad for American products and services as growth cools in major economies, such as China, and Europe continues to grapple with high unemployment. Meanwhile, American consumers have reined in spending during the winter, leading to fewer imports of goods such as...

[03/07/14]  U.S. employers stepped up hiring in February despite a blast of harsh winter weather, renewing hopes that the economy could accelerate this year. February's gain of 175,000 jobs, up from January's 129,000, coincided with a rise in the unemployment rate to 6.7 percent from a five-year low of 6.6 percent. The rate rose because more people began seeking jobs but some didn't find them. That's still an encouraging sign: More job hunters suggest that people grew more optimistic about their prospects. Friday's figures from the Labor Department were a welcome surprise after recent reports showed that harsh weather had closed factories, lowered auto sales and slowed home...

[02-07-14]  Payrolls in the U.S. rose less than projected in January as retailers cut back after the holidays and government hiring fell. The unemployment rate unexpectedly declined to 6.6 percent. The 113,000 gain in employment followed a 75,000 increase the prior month, Labor Department figures showed today in Washington. The median forecast of economists in a Bloomberg survey called for a 180,000 advance. The unemployment rate dropped to the lowest level since October 2008 even as more Americans entered the labor force. Retailers and government agencies cut payrolls by the most in more than a year, while construction firms and manufacturers boosted employment. Stocks climbed on speculation the report may...