Weekly Economic Update: December 3-7, 2012

Dec 10 2012

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The economy added 146,000 jobs in November as the unemployment rate declined to 7.7%. Consumer credit increased 0.5% to $2.753 trillion in September. Productivity increased 2.9% in the 3rd quarter of 2012. The ISM index declined 2.2 points to 49.5 in November as the ISM services index edged up 0.5 points to 54.7. Construction spending was up 1.4% in October. Factory orders increased 0.8% in October. Auto sales jumped up 8.7% in November. Initial jobless claims dropped 25,000 to 370,000 for the week ended 12/1.

• The economy added 146,000 nonfarm payroll jobs in November as the unemployment rate dropped to 7.7%, from 7.9% in October. According to the household survey (which determines the unemployment rate and is separate from the establishment survey which measures jobs), the labor force declined by 350,000 and the number of people employed declined by 122,000.

• Consumer credit increased by $14.2 billion, or 0.5%, to $2.753 trillion in October. Revolving credit (i.e., credit cards) increased 0.4% while non-revolving credit (i.e., auto loans) rose 0.6%.

• Productivity grew 2.9% in the 3rd quarter of 2012. This marks an upward revision from the previously reported 1.9% growth.

• The ISM index unexpectedly fell 2.2 points to 49.5 in November. The below-50 reading indicates contraction in the manufacturing sector for the fourth time in the past six months. November’s topline reading was the lowest since July 2009. The employment component of the index, at 48.4, was the lowest since September 2009.

• The ISM services index increased 0.5 points to 54.7 in November.

• Construction spending rose 1.4% in October.

• Factory orders rose 0.8% in October.

• Auto sales jumped up 8.7% in November to an annual pace of 15.54 million units. Sales were up 14.7% from a year ago.

• Initial jobless claims dropped 25,000 to a level of 370,000 for the week ended December 1st.

 

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