Finance Matters

Posts Tagged ‘Commerce Department’

US consumer confidence remained weak in September, the Conference Board has reported.

The closely-monitored Consumer Confidence Index from the Conference Board edged higher to 45.4 this month from August’s upwardly revised reading of 45.2.

However, not only was the reading less than forecasts of a level of 46.6, it was the lowest since April 2009 when the economy was in the midst of a recession.

Furthermore, the index remains far away from the 90 points required to show that the world’s largest economy is on solid footing.

Since the index commenced in 1967, the average reading has been 95.6.

Commenting on the figures, Lynn Franco, director of the Conference Board Consumer Research Centre said: “The pessimism that shrouded consumers last month has spilled over into September. Consumer expectations, which had plummeted in August, posted a marginal gain.

“However, consumers expressed greater concern about their expected earnings, a sign that does not bode well for spending. In addition, consumers’ assessment of current conditions declined for the fifth consecutive month, a sign that the economic environment remains weak.”

This will be a cause for concern since consumer spending is closely monitored as it accounts for more than two-thirds of economic output.

Earlier this month, the Commerce Department revealed retail sales stagnated last month.

Sales were flat from the month earlier after July’s figure was revised down to 0.3% from 0.5%.

However, not only is consumer spending a concern, the economic recovery in the US remains sluggish in the face of higher unemployment and a depressed housing market.

The Labor Department recently revealed the US economy added no new jobs last month, which was a surprise after markets had expected 70,000 new jobs.

This represented the first time since 1945 that there has been a zero payrolls figure after 17,000 jobs were added in the private sector last month but these were cancelled out by 17,000 jobs lost in the public sector.

Meanwhile, in other US news this week, it has been revealed that house prices rose 0.9% in July compared with June when values rose 1.2%.

On an annual basis, however, prices are 4.1% lower.

The US housing market has remained in the doldrums for some time now and many have suggested it is holding back the recovery of the world’s largest economy but the latest figures suggest the housing market may be stabilising.

However, demand for housing in the US remains weak, despite mortgage rates hovering at record lows and falling house prices – the latter due to millions of home repossessions.

The Commerce Department has revealed sales of new homes in the US fell to a six-month low in August, suggesting the housing market remains depressed.

According to the Commerce Department, new single-family home sales fell 2.3% in August to a seasonally adjusted annual rate of 295,000 units – the lowest level since February.

The figure is now less than half the 700,000 units which experts believe demonstrates a healthy market.

Demand for housing in the US remains weak, despite mortgage rates hovering at record lows and falling house prices – the latter due to millions of home repossessions.

According to one analyst, builders are discouraged from constructing new homes due to the oversupply of existing homes on the market. As a result, sales of new homes are weak, while house prices continue to dip.

Meanwhile, the figures come shortly after the National Association of Realtors (NAR) revealed sales of previously owned homes in the US rose 7.7% to a seasonally adjusted annual rate of 5.03 million in August from an upwardly revised 4.67 million in July.

This is more than 18% higher than the 4.24 million unit level seen a year ago, the NAR said.

According to Lawrence Yun, NAR chief economist: “Some of the improvement in August may result from sales that were delayed in preceding months, but favorable affordability conditions and rising rents are underlying motivations.”

In related news, the closely-monitored Consumer Confidence Index from the Conference Board is due to be published today.

Confidence is only expected to show a slight improvement, with the index expected to rise to 46 this month – albeit, far away from the 90 points required to show that the world’s largest economy is on solid footing.

Since the index commenced in 1967, the average reading has been 95.6.

The Commerce Department has revealed sales of new homes in the US fell to a six-month low in August, suggesting the housing market remains depressed.

According to the Commerce Department, new single-family home sales fell 2.3% in August to a seasonally adjusted annual rate of 295,000 units – the lowest level since February.

The figure is now less than half the 700,000 units which experts believe demonstrates a healthy market.

Demand for housing in the US remains weak, despite mortgage rates hovering at record lows and falling house prices – the latter due to millions of home repossessions.

According to one analyst, builders are discouraged from constructing new homes due to the oversupply of existing homes on the market. As a result, sales of new homes are weak, while house prices continue to dip.

Meanwhile, the figures come shortly after the National Association of Realtors (NAR) revealed sales of previously owned homes in the US rose 7.7% to a seasonally adjusted annual rate of 5.03 million in August from an upwardly revised 4.67 million in July.

This is more than 18% higher than the 4.24 million unit level seen a year ago, the NAR said.

According to Lawrence Yun, NAR chief economist: “Some of the improvement in August may result from sales that were delayed in preceding months, but favorable affordability conditions and rising rents are underlying motivations.”

In related news, the closely-monitored Consumer Confidence Index from the Conference Board is due to be published today.

Confidence is only expected to show a slight improvement, with the index expected to rise to 46 this month – albeit, far away from the 90 points required to show that the world’s largest economy is on solid footing.

Since the index commenced in 1967, the average reading has been 95.6.

The Commerce Department has revealed sales of new homes in the US fell to a six-month low in August, suggesting the housing market remains depressed.

According to the Commerce Department, new single-family home sales fell 2.3% in August to a seasonally adjusted annual rate of 295,000 units – the lowest level since February.

The figure is now less than half the 700,000 units which experts believe demonstrates a healthy market.

Demand for housing in the US remains weak, despite mortgage rates hovering at record lows and falling house prices – the latter due to millions of home repossessions.

According to one analyst, builders are discouraged from constructing new homes due to the oversupply of existing homes on the market. As a result, sales of new homes are weak, while house prices continue to dip.

Meanwhile, the figures come shortly after the National Association of Realtors (NAR) revealed sales of previously owned homes in the US rose 7.7% to a seasonally adjusted annual rate of 5.03 million in August from an upwardly revised 4.67 million in July.

This is more than 18% higher than the 4.24 million unit level seen a year ago, the NAR said.

According to Lawrence Yun, NAR chief economist: “Some of the improvement in August may result from sales that were delayed in preceding months, but favorable affordability conditions and rising rents are underlying motivations.”

In related news, the closely-monitored Consumer Confidence Index from the Conference Board is due to be published today.

Confidence is only expected to show a slight improvement, with the index expected to rise to 46 this month – albeit, far away from the 90 points required to show that the world’s largest economy is on solid footing.

Since the index commenced in 1967, the average reading has been 95.6.

The Commerce Department has revealed US exports hit an all-time high in July, while imports fell.

According to official figures, exports surged 3.8% to $178 billion (£111 billion) after two months of declines.

The rise in exports was attributed to strong overseas sales of manufactured goods, particularly to countries in Central and South America.

Meanwhile, imports fell 0.2% to $222.8 billion – attributed to the decline in the price of oil reducing the cost of the US’s crude imports.

As a result of the figures, the trade gap fell 13.1% to $44.8 billion.

Meanwhile, US’ politically sensitive trade gap with China swelled 1.1% to $27 billion – the biggest imbalance in almost a year.

President Barack Obama has previously said that he wants to double US exports in the next three years to drive employment so the figures will be a welcome boost.

Yesterday, the President addressed the nation about a plan for job creation. He unveiled a $450 billion (£282 billion) package aimed at boosting the economy and reducing the federal deficit.

The bill includes tax cuts to workers and small businesses to boost job creation.

Mr Obama has previously said job creation is a top priority; continued high unemployment could threaten his prospects for re-election next year.

Last week, the Labor Department revealed the economy added no new jobs last month, which was a surprise after markets had expected 70,000 new jobs.

This represented the first time since 1945 that there has been a zero payrolls figure after 17,000 jobs were added in the private sector last month but these were cancelled out by 17,000 jobs lost in the public sector.

The economic recovery in the US remains sluggish in the face of higher unemployment and a depressed housing market.

In related news, yesterday the latest Beige Book report, published by the Federal Reserve revealed widespread signs that US economic growth continues to slow.

The US central bank has previously said the economy is weaker and that policymakers will explore ways to boost growth and lower unemployment at its policy meeting later this month.