Economic News

[Fivetears]

Producer prices barely rise in July
WASHINGTON - U.S. producer prices barely edged up in July, kept in check by lower prices for new cars and trucks and for many food items, according to a Labor Department report on Tuesday showing muted inflation at the wholesale level. The department's producer price index -- a gauge of prices received by farms, factories and refineries - rose 0.1 percent following a 0.5 percent jump in June. So-called core producer prices, which exclude volatile food and energy items, declined 0.3 percent last month after a 0.2 percent June gain. The figures came in well below Wall Street analysts' forecasts for a 0.4 percent climb in wholesale prices and for a 0.2 percent gain excluding food and energy items.
http://news.yahoo.com/s/nm/20060815/bs_nm/economy_prices_dc_2

 

[Fivetears]

Inflation rises on wholesale level
WASHINGTON - Inflation at the wholesale level edged up by the smallest amount in five months in July as falling food prices helped offset another rise in energy costs. The Labor Department reported that wholesale prices increased a slight 0.1 percent in July, far below the 0.5 percent jump in June. The improvement reflected a retreat in food prices, which fell by 0.3 percent in July, after having surged by 1.4 percent in June, which had been the biggest increase in nearly
http://news.yahoo.com/s/ap/20060815/ap_on_bi_go_ec_fi/economy_3

 

[Fivetears]

Retail earnings mixed
NEW YORK - Wal-Mart Stores Inc. and BJ's Wholesale Club Inc. posted lower quarterly profits on Tuesday, and Home Depot Inc. gave a disappointing forecast, reigniting worries about a spending slowdown in the face of higher energy prices. Wal-Mart, the world's biggest retailer, reported a 26 percent drop in quarterly profit -- its first earnings decline in more than 10 years -- because of a charge for selling its German stores to a rival. The company also forecast a third-quarter profit that could fall below Wall Street expectations. Home Depot Inc., the world's largest home improvement retailer, posted a 5 percent rise in second-quarter profit, but softened its sales and earnings growth outlook for this year, as the U.S. housing market cools.
http://news.yahoo.com/s/nm/20060815/bs_nm/retail_earnings_dc_1

 

[Fivetears]

Inflation Gives Signs of Slowing
The government’s latest report on consumer prices, issued yesterday, suggests that inflation is slowing. The overall rise came to a seasonally adjusted 0.4 percent in July, mainly because of a surge in gasoline prices and in the monthly cost of renting a home, even as the housing market itself deteriorated. Nothing else went up very much, the government reported, and apparel prices plunged because of deep discounts in women’s summer clothing as retailers sought to work down inventories.
http://www.nytimes.com/2006/08/17/b...dde42b2e7625&ei=5089&partner=rssyahoo&emc=rss

 

[Fivetears]

U.S. housing starts fall 2.5% in July
Housing starts, tracking the nation's rate of construction on new homes, fell 2.5% last month to 1.8 million on a seasonally adjusted annual basis, the Commerce Department said Wednesday. This marked the fifth decline in housing starts in the last six months. It's the lowest level since November 2004. Economists surveyed by MarketWatch had been looking for a smaller decline, to about 1.82 million starts in July. Meanwhile, building permits -- an indicator that foreshadows future construction activity -- plunged 6.5% to 1.75 million annual units for July. This was the sixth straight monthly decline and the largest drop seen since September 1999. Permits are at their lowest level since August 2002.
http://www.marketwatch.com/News/Sto...526-44CC-9D27-B4D4B1CFBD22}&siteid=yhoo&dist=

 

[Fivetears]

Top 10 areas at risk for mortgage-rate shock
"The Impending Rate Shock: A study of home mortgages in 130 American cities," the top 10 areas most at risk for "rate adjustment shock" include Detroit and Flint, Mich.; Memphis, Tenn.; Jackson, Miss.; McAllen, El Paso, Laredo and Brownsville, Texas; Springfield, Ill.; and Birmingham, Ala. ACORN is an acronym for Association of Community Organizations for Reform Now and it advocates for low- and moderate-income families. High-cost loans represented more than two of every five home-purchase and refinance loans in the 10 communities most at risk, ACORN said in a news release. Adjustable-rate mortgages account for 24% of all home loans nationwide, according to the report, but ARMs made up three-fourths of all subprime home loans in 2005. In 1999, half of all subprime loans were ARMs. Subprime loans are those made to borrowers with blemished credit records and often come with high rates and fees.
http://www.marketwatch.com/News/Story/3fJNX2VCspJ4mWFPwLqRvBZ?siteid=yhoo&dist=TNMostRead

 

[Fivetears]

Utility output growth more than doubles in July
Utilities increased their output to cool the nation's homes and businesses in July, boosting overall industrial output by 0.4%, the Federal Reserve said Wednesday. Output at U.S. factories increased 0.1%. The report, combined with data about core consumer inflation and housing starts, lessened the likelihood that the Federal Reserve will raise interest rates at their September meeting.
http://www.marketwatch.com/News/Sto...F4D-4B31-802B-6F24C8C43A1F}&siteid=yhoo&dist=

 

[Fivetears]

Jobless claims fell in latest week
WASHINGTON - The number of U.S. workers seeking first-time jobless aid fell by 10,000 last week, a government report on Thursday showed, signaling a relatively healthy job market. The Labor Department said the number of initial jobless claims declined to 312,000 in the week ended August 12 from a revised 322,000 in the prior week. That was moderately lower than the 315,000 claims that analysts had forecast in a Reuters poll.
http://news.yahoo.com/s/nm/20060817/bs_nm/economy_dc_6

 

[Fivetears]

Todays Economic Calendar
Jobless Claims (wk8/12 , 2006)
Leading Indicators (Jul , 2006)
EIA Natual Gas Report (wk8/12 , 2006)
Philadelphia Fed Survey (Aug , 2006)
Money Supply (wk8/7 , 2006)

 

[Fivetears]

Index of economic indicators falls
NEW YORK - An indicator of future economic activity dipped in July, a private research group reported Thursday, in the latest sign that economic growth is cooling off. The Conference Board, an industry-backed research group based in New York, said its index of Leading Economic Indicators fell 0.1 percent in July from June, following an increase of 0.1 percent in June and a 0.5 percent decline in May. Analysts had expected an increase of 0.1 percent. The index, which is aimed at forecasting economic activity for the following three to six months, stood at 138.1, below its high so far this year of 139.1 in January.
http://news.yahoo.com/s/ap/20060817/ap_on_bi_ge/economy

 

[Fivetears]

Costly textbooks get a closer look
Concerns over spiraling college textbook prices have prompted state legislators to introduce more than 40 bills and resolutions in 15 states this year. And other states have looked into making textbooks more affordable, the National Association of College Stores says. In June, Congress asked a federal advisory panel to "shed light on this issue." Hearings begin next month; a report is due in May. A report last August by the Government Accountability Office said students could spend as much as $900 a year on new textbooks and supplies. It blames publishers for driving up costs by "bundling" workbooks or CD-ROMs and by making unnecessary updates. Publishers say the report is flawed.
http://www.usatoday.com/news/education/2006-08-16-textbooks-college_x.htm

 

[Fivetears]

CBO says deficit will drop then climb
WASHINGTON — The Congressional Budget Office on Thursday estimated that the federal deficit will decline to $260 billion this year but will increase to $286 billion next year with total deficits over the next decade put at $1.7 trillion. The $260 billion forecast for the current budget year, which the CBO previewed earlier this month, would represent an improvement from last year's actual deficit of $319 billion. However, the detailed CBO report released Thursday showed that the improvement will be temporary with deficit expected to swell to $1.7 trillion over the next decade.
http://www.usatoday.com/news/washington/2006-08-17-deficit_x.htm

 

[Fivetears]

Job losses lead to drop in home prices
The loss of manufacturing jobs helped drive down home prices in 26 metro areas between April and June compared with the same period last year, the National Association of Realtors said Tuesday. That's 10 more areas than in the first quarter, and it spotlights how joblessness in industrial states such as Illinois, Michigan, Ohio and Indiana is rippling through housing markets. The hardest-hit this year: Danville, Ill., where prices at which existing homes were sold fell 11% in the second quarter after a 12% drop in the first quarter. The exodus of auto, textile and other factory jobs has a direct effect on home prices. People leave town to look for work, boosting the supply of homes for sale. Others sell their homes because they can't keep up with the mortgage. At the same time, foreclosure rates in these cities are among the highest in the country, and banks are quick to cut prices to get the homes off their books.
http://www.usatoday.com/money/economy/housing/2006-08-15-q2-home-sales_x.htm

 

[Fivetears]

Data point to slowing economy
WASHINGTON - A weakening U.S. housing market and a steady flow of Americans seeking jobless benefits will help lead to a slowed economy over the coming months, data released on Thursday showed. A key gauge of future economic activity fell unexpectedly for the fourth time this year amid signs of a stalling housing market. Meanwhile, the coincident index -- a measure of current economic activity -- rose 0.2 percent last month, building on a 0.2 percent gain a month earlier. So far this year, this index has logged monthly gains. The leading index measures a basket of economic indicators ranging from unemployment benefit claims to building permits and is intended to forecast economic trends up to six months ahead. According to the Conference Board, half of the 10 indicators that make up the leading index increased in July, but it was mainly a decline in building permits and a steady number of weekly claims for jobless benefits that drove down the index.
http://news.yahoo.com/s/nm/20060817/bs_nm/economy_dc_7

 

[Pilgrim]

How bad does the immediate future look to Washington insiders if W himself is getting involved? Or do you suppose this is just meaningless election year posturing?

Bush, advisers seek ways to sustain growth - White House eyes slowing economy, mulls strategy, options.

http://money.cnn.com/2006/08/18/news/economy/bc.bush.economy.reut/index.htm

 

[FundSurfer]

How bad does the immediate future look to Washington insiders if W himself is getting involved? Or do you suppose this is just meaningless election year posturing?

Bush, advisers seek ways to sustain growth - White House eyes slowing economy, mulls strategy, options.

http://money.cnn.com/2006/08/18/news/economy/bc.bush.economy.reut/index.htm

They want a boost to get them through the elections. They want a slow down, just one that starts in January.

 

[Fivetears]

Best factory growth in 16 months in Philly region
The Philly Fed index rose from 6.0 in July to 18.5 in August, the highest since April 2005. Economists were looking for a slight gain to 7.8 in August, according to a survey conducted by MarketWatch. "Given ongoing strength in the factory sentiment measures into August, and sustained strength in the mix of factory workweek, employment, and overtime data, there is yet little evidence that this sector is responding to the widely assumed '"slowdown,'" said Mike Englund, chief economist for Action Economics.
http://www.marketwatch.com/News/Sto...4EC-45A9-B7F7-34CCB6FE3482}&siteid=yhoo&dist=

 

[Fivetears]

Consumer sentiment fell in early August
NEW YORK - U.S. consumer sentiment dropped more than expected in early August, a report showed on Friday, as consumers' view of current and future conditions declined. The University of Michigan's preliminary reading of consumer sentiment in August was 78.7, down from July's final reading of 84.7, said sources who saw the subscription-only report. The median forecast of Wall Street economists polled by Reuters was for a reading of 83.6. The survey's index of current conditions declined to 100.8 in August from 103.5 in July, while consumer expectations slipped to 64.5 from 72.5 in July. Consumer spending accounts for about two-thirds of U.S. economic activity, but in recent years confidence measures have been a weak guide to actual spending. Consumers' expectations for increased inflation rose in August the report said, according to the sources.
http://news.yahoo.com/s/nm/20060818/bs_nm/economy_consumers_sentiment_dc_1

 

[Fivetears]

Bush huddles with economic team as growth slows
WASHINGTON - President George W. Bush will wrap up conferring with his economic team on Friday on ways to keep the economy growing against a backdrop of higher interest rates, mixed data and fears of rising inflation. His closed-door meetings with new Treasury Secretary Henry Paulson, Commerce Secretary Carlos Gutierrez and Director of the National Economic Council Allan Hubbard, began on Thursday evening at the Camp David presidential retreat. "The President and his economic team will be talking about the general macroeconomic picture and job growth," White House spokeswoman Dana Perino said. "They will discuss the budget both as a short-term and as a long-term entitlement spending issue," she said. "And they will focus on financial markets and pro-growth tax policy."
Bush is scheduled to speak with reporters at 11:15 a.m. EDT on Friday.
http://news.yahoo.com/s/nm/20060818/bs_nm/bush_economy_dc_1

 

[Fivetears]

Todays Economic Calendar
Consumer Sentiment
9:50 AM Mich Sentiment-Prel.