Weekly Economic Update: October 28 - November 1, 2013

Nov 05 2013

Associated Image

Industrial production rose 0.6% in September. Pending home sales fell 5.6% in September to 101.6. The topline producer price index fell 0.1% in September while the core PPI rose 0.1%. The topline consumer price index rose 0.2% in September while the core CPI rose 0.1%. The Case-Shiller home price index rose 0.9% in August. Business inventories increased 0.3% in August. Vehicle sales fell 0.3% in October to an annual pace of 15.23 million units. The ISM index increased 0.4% to 56.4 in October. The Treasury budget posted a $75.1 billion surplus in September with the deficit falling 37% over the fiscal year to $680 billion. The FOMC announced its plans to maintain its current accommodated policies, including the fed funds target at a range of zero to 0.25%, the continued purchase of additional agency mortgage-backed securities at a pace of $40 billion per month and longer-term Treasury securities at a pace of $45 billion per month, and to keep reinvesting principal payments from previous QE asset purchases. Initial jobless claims fell 10,000 to 340,000 for the week ended 10/26.

• Industrial production rose 0.6% in September.

• Pending home sales fell 5.6% in September to 101.6. Year-over-year, the index is down 1.2% for the first negative reading in almost 2.5 years.

• The topline producer price index fell 0.1% in September while the core PPI rose 0.1%.

• The topline consumer price index rose 0.2% in September while the core CPI rose 0.1%.

• The Case-Shiller home price index rose 0.9% in August. The Washington D.C. metro area index increased 1.3% over the month, up 12.8% from a year ago.

• Business inventories increased 0.3% in August.

• Vehicle sales fell 0.3% in October to an annual pace of 15.23 million units. Vehicle sales are up 5.8% over the year.

• The ISM index increased 0.4% to 56.4 in October.

• The Treasury budget posted a $75.1 billion surplus in September with the deficit falling 37% over the fiscal year to $680 billion. Receipts sharply increased 13.3$ in the year with individual taxes rising 16.3% while outlays fell 2.3% with defense spending down 6.3%.

• The FOMC announced its plans to maintain its current accommodated policies, including the fed funds target at a range of zero to 0.25%, the continued purchase of additional agency mortgage-backed securities at a pace of $40 billion per month and longer-term Treasury securities at a pace of $45 billion per month, and to keep reinvesting principal payments from previous QE asset purchases. Guidance of a 6.5% unemployment rate and a 2.5% expected inflation rate also remains unchanged. The vote was 9 to 1 with Kansas City Fed’s Esther George dissenting and Fed Governor Sarah Bloom Raskin not in attendance.

• Initial jobless claims fell 10,000 to 340,000 for the week ended October 26th.

Bookmark and Share