Consumer Spending and Personal Income

Consumer Spending and Personal Income

June 29, 2016 – Consumer spending makes up approximately two-thirds of the economy and is a direct measure of purchasing activity over the course of time.  We are able to see where consumers are spending their dollars, whether it be durable and nondurable goods, or on services.  An increase in consumer spending bodes well for the overall economy as corporate …

Gross Domestic Product

Components of GDP % Change

June 28, 2016 – GDP, or Gross Domestic Product, is the broadest and most well-known measure of economic activity within a country.  It is the market value of all final goods and services produced within a country over a certain time frame.  When totaling GDP, there are four components we look at:  investment, consumption, government spending, and net exports.  From …

Market Update – Brexit Edition

June 24, 2016 – It is on days like today that we know how the news media gets paid.  Sensationalism gets eyeballs.  Unfortunately it lacks any kind of rational thought. Let’s take a look at the realities of the UK vote. Visit our Market Update section for our full report (http://www.seboldcapital.com/market-update/)

Durable Goods Orders

Durable Goods Orders

June 24, 2016 – Durable goods orders, which are orders to buy products that are expected to last at least 3 years, is an indicator giving us an idea as to how busy factories will be in the near future.  The higher the amount of orders, the more manufacturers work to fill those orders.  As the name suggests, durable orders …

New Home Sales

New Home Sales

June 23, 2016 – New single-family home sales represent the number of brand new houses that were purchased or committed to being purchased over the course of a month.  This indicator provides insight into the demand for housing which has a significant impact on GDP and the overall economy.  New home sales require a house to actually be built, causing …

Existing Home Sales

June 22, 2016 – Existing home sales give us the number of purchases made for homes, condominiums, and co-ops that have already been built.  Existing home sales provide us an indication as to the strength of demand for housing.  An increase in homes sold means people are feeling more confident in their financial situation.  While home resales may not generate …

Housing Starts

Housing Starts

June 17, 2016 – Housing starts track the number of new residential construction projects underway over the course of a month. A rise in demand for construction of new homes means a rise in demand for construction spending and construction jobs. While it may be seasonal, an increase in construction jobs means more wages being paid and more income to …

Retail Sales

Retail Sales

June 15, 2016 – Retail sales are the total amount of merchandise and related services sold to consumers.  It is considered a sign of the strength of consumer spending.  Due to the fact that consumer spending is such a large component of the overall economy (accounting for more than two-thirds of the economy), higher spending (as seen in measures such …

Nonfarm Payrolls

Change in Nonfarm Payrolls

June 6, 2016 – The employment situation gives us the most comprehensive look at the labor market in the U.S. as we are able to track new jobs, additions or subtractions from the labor force, and the unemployment rate.  An increasing workforce keeps the economy moving forward with more people employed and being paid a wage, which leads to an …

ISM Manufacturing Index

ISM Manufacturing

June 3, 2016 – The ISM Manufacturing Index gives us clues as to the strength of the factory sector and manufacturing activity in the U.S. by looking at factors such as orders for durable goods, industrial production and hiring.  A reading above 50 is an indicator that the manufacturing sector is growing, reflecting an increase in demand and an increase …