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August 1, 2013

Good News for Jobs and Manufacturing.

August 1, 2013

Good News for Jobs and Manufacturing.

Jobless Claims (week ended 7/26/2013)

– New Claims (seasonally adjusted) 326,000.  Previous was 345,000

– 4-week Moving Average  341,000.  Previous was 345,250.

– Initial claims (unadjusted) totaled 279,869 in the week ending July 27, a decrease of 60,084 from the previous week.

This is positive news for the economy if we can consistently stay in the 325,000-345,000 range.

 

Challenger Job-Cut Report (July 2013)

Announced Layoffs  37,701. Previous was 39,372.

 

PMI Manufacturing Index (July 2013)

– Index Level  53.7. Previous was 51.9.

ISM Manufacturing Index (July 2013)

ISM Manufacturing Index   55.4. Previous was 50.9.

These two reports indicate growth in manufacturing.  One problem with economic metrics is that too much attention is paid to manufacturing which is no longer what drives jobs and GDP in the U.S.  Nonetheless this data is positive.

 

Construction Spending  (June 2013)

– Construction Spending Month/Month -0.6%. Previous was revised from +0.5% to +1.3% making the July data look weaker that it otherwise would have.

– Construction Spending Year/Year  +3.3 %

 

Yesterday’s FOMC statement asserted that the Fed would continue to expand money supply.  The fact is that the utterly miserable 2ndQ2013 GDP report coupled with a lowering of 1stQ2013 GDP painted a picture of an economy going nowhere despite the Fed’s efforts.