Consumer Spending

Consumer Spending and Personal Income

November 30, 2016 – Consumer spending, measured by Personal Consumption Expenditures (PCE), makes up approximately two-thirds of the economy and is a direct measure of purchasing activity.  We are able to see where consumers are spending their dollars, whether it be durable and nondurable goods, or on services.  Changes in the personal income level dictate consumer spending. Consumer spending increased …

Existing Home Sales

Existing Home Sales

November 22, 2016 – Existing home sales provide the number of purchases made for homes, condominiums, and co-ops that have already been built.  Existing home sales give an indication of demand for housing.  While home resales may not generate new construction jobs like housing starts do, they have a similar effect on consumer spending as people purchase items for their …

Housing Starts

Housing Starts

November 17, 2016 – Housing starts track the number of new residential construction projects underway over the course of a month. This indicator has implications for demand in construction spending/jobs, consumer wages, and complimentary sectors such as durable household item sales. Along with building permits, a metric counted when permission is granted and thus provides insights to future housing and …

Consumer Price Index

Consumer Price Index

November 17, 2016 – The Consumer Price Index (CPI) tells us of any inflationary pressures in the economy.  The CPI measures the average price levels of a basket of goods and services purchased by consumers.  The index starts with a base time period (1982-1984, currently) and shows the overall increase since that time.  As with many economic indicators, it can …

Industrial Production

Industrial Production Index

November 16, 2016 – The Industrial Production Index (IPI) measures the manufacturing, electric, mining, and gas industries output on a monthly basis. The IPI for October remained unchanged, which is an improvement after last month’s data was downwardly revised from 0.1% to -0.2%. However, it narrowly missed consensus expectations of 0.1%. A positive note in the report is that the …

Producer Price Index

Producer Price Index

November 16, 2016 – The Producer Price Index (PPI) looks at the average change in selling prices from the viewpoint of domestic producers of both goods and services. Three areas of production are observed: industry-based, commodity-based and commodity-based final demand-intermediate demand. The Producer Price Index experienced no change in October, falling short of consensus expectations of a 0.3% increase.  The …

Retail Sales

November 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, which accounts for roughly two-thirds of the economy.  This indicator also provides insight into which areas of the retail space are experiencing strong sales, such as auto sales. Retail Sales jumped …

Imports and Exports

Imports and Exports

November 15, 2016 – Import prices tell us the cost of products that are produced abroad and purchased in the U.S., while exports are goods produced in the U.S. but purchased abroad. Import prices in October rose, with prices gaining 0.5% from September.  However, prices are still down 0.2% over the last year.  The 0.5% increase was above consensus expectations …

ISM Manufacturing

ISM Manufacturing Index

November 1, 2016 – The ISM Manufacturing Index for October was 51.9, 4 tenths higher than September’s reading and slightly edging the consensus of 51.6. The New orders index was 52.1, lower than September’s 55.1. The Employment index came in at 52.9, up above 50 for the first time since June. Inventories of raw materials decreased 2 points to 47.5, …