Category Archives: U.S. Economic News

[02/01/16]  The American economy finished the year on a flat note, much as it started 2015, stoking concern about its vulnerability in the months ahead to turmoil in China and elsewhere in the global economy.

But most economists expect activity to rebound as the year unfolds and continue to grind out steady but hardly spectacular growth.

Over all, the economy expanded at an annual rate of just 0.7 percent in the fourth quarter of 2015, the Commerce Department said Friday.

It could have been worse: Ahead of the report, a few...

[11/18/15]  Housing starts in the United States fell to a seven-month low in October, weighed down by a steep decline in the construction of multifamily homes. A surge in building permits, though, suggested that the housing market remained on solid ground.

Groundbreaking dropped 11 percent to a seasonally adjusted annual pace of 1.06 million units last month, the lowest level since March, the Commerce Department said on Wednesday.

October was the seventh consecutive month that starts remained above one million units, the longest stretch since 2007. Building permits increased 4.1 percent to an annual rate...

[11/17/15]  Consumer prices in the United States increased in October after two consecutive months of declines, as the cost of health care and other services rose. The economic outlook also received a lift from other data on Tuesday showing a fairly solid increase in manufacturing output in October.

The Labor Department said on Tuesday that its Consumer Price Index increased 0.2 percent last month, reversing a 0.2 percent drop in September. In the 12 months through October, the index advanced 0.2 percent; it was unchanged in September.

Signs of stabilization in prices after a recent...

[10/27/15] A gauge of United States business investment plans fell for a second straight month in September, pointing to a sharp slowdown in economic growth and casting more doubt on whether the Federal Reserve will raise interest rates this year.

Other data on Tuesday showed that consumer confidence slipped in October in the face of worries over a recent moderation in job growth and its potential impact on income. Housing, however, remained the bright spot, and home prices accelerated in August. That should improve household wealth, which has been buffeted by a strong dollar, weak global demand, spending...

[09/17/15]  It has been seven years of zero percent interest rates. What’s another two or three months among friends?

That’s the conclusion that Janet Yellen and her colleagues at the Federal Reserve reached in their policy meeting on Thursday. They left interest rates unchanged at the same near-zero level where they have been lodged since December 2008. For them, the risk of changing course prematurely just seemed higher than another couple of months of zero rates.

Ms. Yellen blinked, which is not to say she made a mistake. Sometimes blinking is a very sensible thing...