Weekly Economic Update: July 30 - August 3, 2012

Aug 06 2012

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The economy added 163,000 jobs in July as the unemployment rate rose to 8.3%. The FOMC held constant its current target federal funds rate and other policies. The ISM index edged up 0.1 point to 49.8 in July as the ISM services index rose 0.5 points to 52.6. Auto sales declined 2.0% in July. The Case-Shiller index was up 0.9% in May. Personal income rose 0.5% in June while spending was unchanged. Factory orders were down 0.5% in June. Initial jobless claims rose by 8,000 to a level of 365,000 for the week ended 7/28.

• The economy added 163,000 payroll jobs in July as the unemployment rate rose to 8.3%. The private sector added 172,000 jobs while government employment declined by 9,000. The labor force fell by 150,000 as the participation rate edged down to 63.7%.

• The FOMC held constant its target for the federal funds rate in the range of 0.0%-0.25%. At least for now, the Fed held off on further monetary stimulus.

• The ISM index edged up 0.1 points to 49.8 in July. This marks the second month in a row that the index has indicated a contracting manufacturing sector (a reading below 50). The last time the index was below 50 was three years ago just after the recession officially ended.

• The ISM services index rose 0.5 points to 52.6 in July.

• Auto sales declined 2.0% in July to an annual pace of 14.09 million units. Sales were up 13.6% from a year ago.

• The Case-Shiller home price index was up 0.9% for the month of May, and down 0.7% from a year ago. The Washington DC area component of the index was up 1.4% in May and up 2.8% from a year ago.

• Personal income increased 0.5% in June as personal spending was flat.

• Factory orders unexpectedly declined 0.5% in June.

• Initial jobless claims increased 8,000 to a level of 365,000 for the week ended July 28th.

 

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