Monthly Archives: July 2012
Consumer Prices Flatline in June
The Consumer Price Index (CPI) was unchanged between May and June, as receding prices at the pump were partially offset by increases in prices elsewhere. Food prices edged higher, but much of the increase took place prior to the drought that hit much of the country. Fresh vegetables and fruit, in particular, are likely to [...]
What’s Behind the Retail Sales Fall in June
Retail sales dropped 0.5%, with losses across the board. Auto sales dropped 0.6%, which given the seasonally-adjusted unit sales for the month, suggests at least a portion of the sales in June were driven by fleet sales to companies rather than direct sales to consumers. The declines in retail spending were widespread, despite some easing [...]
What is Really at Stake in Greece
I’ve received a number of questions lately about what is going on in Greece and the euro zone. There are some common misconceptions, so I’ve written the following to explain in detail. Despite the “orderly restructuring” (read: ‘managed default”) of the Greek debt last March and the results of recent elections in Athens that brought [...]
Hotter-than-Expected PPI not a Concern
The Producer Price Index (PPI) edged up 0.1% in June, well above the market consensus for a decline of 0.4%. However, this is after the PPI fell by a full, one percent in May. Food prices rose and energy prices further retreated last month. The bulk of the increase in prices, however, was concentrated in [...]
Import & Export Prices Plummet on Lower Energy, Agriculture Prices
Both import and export prices dropped, 2.7% and 1.7%, respectively. The bulk of the decline occurred on both sides of the ledger in fuel costs. Indeed, the drop in fuel import prices was the largest decline since December 2008. We also saw agricultural prices fall, particularly on the export side of the ledger. This will [...]
Jobless Claims Plummet during Holiday Week
Jobless claims plummeted 26,000 to 350,000 during the week ending July 7, compared to a revised 376,000 in the previous week. The sharp decline was mostly due to auto makers who kept their plants operating in early July when they are usually closed for retooling. Claims are expected to rise as we move out of [...]
Trade Deficit Narrows On Weaker Imports
The trade deficit narrowed from $50.6 billion in April to $48.7 billion in May. The drop in the deficit was driven by a slide in imports, pointing to a slowdown in everything from consumer spending to manufacturing activity. We also saw a drop in the value of imports of foods, feeds and beverages, which is more reflective of [...]
Consumer Credit Expands $17.1 billion in May
In May, total consumer credit expanded by $17.1 billion. Revolving credit expanded by $8.0 billion, while non-revolving credit grew by $9.1 bil. In recent months, non-revolving credit has grown at quite substantial levels (see chart). This growth is misleading, due to the expansion of the federal government sub-category within non-revolving credit. If you strip out [...]
Diane Swonk on CNBC for Jobs Report
Diane Swonk says the latest jobs report could have been worse; the number of hours worked picked up, so workers have a bit more money in their pockets. .
Job Growth Tepid, Unemployment Still Too High
Payroll employment increased by 80,000 in June, driven by gains in business services. Much of that occurred in temporary help, which is becoming the new semi-permanent hire. Firms can remain flexible in an uncertain environment by hiring on a contingency basis via consultants and temporary workers. Indeed, about a quarter of all private jobs created [...]
Wall Street Journal LIVE turns to Diane Swonk to translate Fedspeak
RSS Feeds