CHART OF THE WEEK

While some blame the falling labor force participation rate on an aging population reaching retirement age, the chart above shows that there is much more going on.  In fact, compared to the rate when the recession began in 2007, a larger number of younger workers are sidelined from the workforce, while older workers (especially those of retirement age) are staying in the workforce in greater numbers.  Neither trend is the sign of a healthy economy. 

 

Approximately 1.9 million prime-age workers (ages 25 to 54) remain outside the labor force since the recession began in December 2007.

 

LAST WEEK

News & Commentary Weekly Highlights:

• Daily Signal: Another Way Regulation Could Limit Economic Opportunity for Millions (Wednesday)
• CEI: Facebook Makes the Case for "Free Basics" Internet Access (Wednesday)
• Bloomberg: A Fed Divided Against Itself (Wednesday)
• Daily Signal: Court Ruling Reins in Unaccountable Financial Regulation Agency (Tuesday)
• E21: The One Budget Reform that Matters (Monday)

 

Top Economic Indicator Highlights:

• Producer Price Index (PPI) (September 2016, seasonally adjusted, year-over-year changes)
  • The PPI measures the change in prices of goods and services used in the production of other goods and services.
  • September: 1.2%, August: 1.0%, July: 0.7% (excluding food & energy)
  • Noteworthy: The PPI began to move upward after a persistent lull in 2015.  Although the Fed’s primary inflation gauge is the core PCE index (personal consumption expenditures excluding food and energy), the Fed also watches the PPI.  Accelerating inflation makes a Fed rate hike more likely.

 

THIS WEEK

Upcoming Major Indicators

• Empire State Manufacturing Survey (8:30am, Mon)
• Industrial Production and Capacity Utilization (9:15am, Mon)
• Business Leaders Survey (8:30am, Tue)
• Consumer Price Index (8:30am, Tue)
• Real Earnings (8:30am, Tue)
• Atlanta Fed Business Inflation Expectations Survey (8:30am, Wed)
• New Residential Construction (8:30am, Wed)
• Federal Reserve Board of Governors Beige Book (2:00pm, Wed)
• Jobless Claims (8:30am, Thu)
• Philly Fed Manufacturing Survey (8:30am, Thu)
• Composite Indexes (10:00am, Thu)
• Existing Home Sales (10:00am, Thu)
• Regional and State Employment and Unemployment (10:00am, Fri)