In Friday’s employment situation report we learned that 162k jobs were added in July. ADP estimated that the gain in payrolls was 200k. This was a weak reading, and the details of the report were even more negative. The average duration of unemployment increased to 36.6 weeks while average weekly earnings declined. The unemployment rate did fall to 7.4% on a falling labor force participation rate.

The advance estimate of GDP for the second quarter of 2013 showed an annual growth rate of 1.7%. This is slow growth and was made worse by the downward revision to Q1.

The release of the BLS employment cost index showed that government employment costs are starting to lag the private sector.

Real disposable personal income decreased 0.1% in June. Real personal consumption expenditures increased but only 0.1%.

The ISM manufacturing PMI saw a healthy increase to 55.4. The Chicago PMI also increased in July to a reading of 52.3. The Dallas Fed manufacturing survey declined but remained in expansion at +4.4.

Factory orders increased 1.5% in June. Light weight vehicle sales in July were at a SAAR of 15.67 million, down from June but an 11.6% year over year increase.

The Case-Shiller house price index was up 12.4% year over year in May. Construction spending was up 3.3% year over year in June.

Consumer confidence decreased on weak expectations for the future to a reading of 80.3.

Initial jobless claims for the week fell to 326k, their lowest level since January 2008.

Store sales for the week were up 2.2% Y/Y and up 3.2% Y/Y (4 week MA).

Further reading:

Economic Radar

The schedule for the U.S. economic week ahead:

Monday, August 5, 2013

Tuesday, August 6, 2013

Wednesday, August 7, 2013

Thursday, August 8, 2013

  • Weekly initial jobless claims

Friday, August 9, 2013

  • None