Consumer Spending

Consumer Spending and Personal Income

August 31, 2017 –  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 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. Personal income bumped up 0.4% in …

GDP

Components of GDP % Change

August 30, 2017 – Gross Domestic Product (GDP) is the broadest measure of economic activity within a country and measures the market value of all final goods and services produced within a country over a certain period.  There are four components GDP is created from:  investment (including residential and nonresidential expenditures), consumption (including durable goods, non-durable goods, and services spending), …

Case-Shiller

S&P / Case-Shiller 20-City Index

August 29, 2017 – The 20-city S&P/Case-Shiller index is a measure of existing home values across 20 metropolitan areas throughout the U.S.  Home values have a broad impact on the economy, including the housing and consumer sectors. The 20-city Case-Shiller index rose a seasonally adjusted 0.1% in June, below the expectations of 0.3% increase and remained the same as May’s …

Durable Goods Orders

Durable Goods Orders

August 25, 2017 – Durable goods orders, which are orders to buy products that are expected to last at least three years, indicates how busy factories will be in the near future.  As the name suggests, durable orders provide a look into demand for equipment along with other big-ticket purchases, such as vehicles and appliances. An increase in capital spending …

Existing Home Sales

Existing Home Sales

August 24, 2017 – 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 those that housing starts do, they have a similar effect on consumer spending as people purchase items …

New Home Sales

New Home Sales

August 23, 2017 – 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 has a trickle-down effect as demand rises for durable goods and consumer spending increases, boosting GDP.  It is also a sign of strength in the consumer balance sheet to …

Architecture Billings Index

Architecture Billings Index

August 23, 2017 – The Architecture Billings Index (ABI) is an indicator for commercial and industrial building activity. The Work-on-the-Boards survey is given to architecture firms each month to report how billing activity performed in the previous month. The ABI is a reliable tool for firms to track architectural movements in the market. Billings for July reported an increase of …

Chemical Activity Barometer

Chemical Activity Barometer

August 22, 2017 – The Chemical Activity Barometer (CAB) is a composite index, which is comprised of indicators drawn from a range of chemicals and sectors, including chlorine and other alkalies, pigments, plastic resins and other selected basic industrial chemicals. It has been shown to provide a lead of 2 to 14 months, with an average lead of 8 months …

Industrial Production Index

Industrial Production Index

August 17, 2017 – The Industrial Production Index (IPI) measures the manufacturing, electric, mining, and gas industries output on a monthly basis. Industrial production increased 0.2% in July, below the consensus of 0.3%. Manufacturing decreased 0.1%, below expectations of 0.2% gains while the capacity utilization rate came in at 76.7%, in line with estimates. Mining is up 0.4% and utilities …

Housing Starts

Housing Starts

August 16, 2017 – 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, housing starts is considered a leading economic indicator. Housing starts in July came in at …