Weekly Economic Update: September 3-7, 2012

Sep 10 2012

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The economy added 96,000 jobs in August as the unemployment rate fell to 8.1%. The ISM index edged down 0.2 points to 49.6 in August as the ISM services index increased 1.1 points to 53.7 in August. Auto sales were up 3.1% in August. Productivity growth for the 2nd quarter was revised upwards to 2.2%. Construction spending fell 0.9% in July. Initial jobless claims declined 12,000 to 365,000 for the week ended 9/1.

• The economy added 96,000 nonfarm payroll jobs in August as the unemployment rate fell to 8.1%. The labor force participation rate fell to 63.5% (marking a more than 30-year low) as the labor force declined by 368,000.

• The ISM index edged down 0.2 points to 49.6 in August. This marks the 3rd straight month that the index has been below 50, indicating contraction in the manufacturing sector. Prior to the past three months, the index had not been below 50 since July 2009, a month after the official end of the recession.

• The ISM services index increased 1.1 points to 53.7 in August.

• Auto sales increased 3.1% in August to an annual pace of 14.52 million units. Sales were up 16.6% from a year ago.

• Productivity growth for the 2nd quarter was revised upwards to 2.2%, from a previous estimate of 1.6%.

• Construction spending declined 0.9% in July.

• Initial jobless claims declined 12,000 to a level of 365,000 for the week ended September 1st.

 

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