About this Economic Recap
This report is a simple recap of economic statistics and events that occurred over the past week. It is notintended to portray
opinion. If you are interested in
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Economic RecapJanuary 2013
As of January 4, 2013
By DoubleLine Research
Week 1 Recap
Residential construction spending expanded by 0.4% in November, marking the eighth consecutive monthlyexpansion. Non-residential spending, on the other hand, contracted by 0.6%, still unable to string togethertwo consecutive months of growth. The overall -0.3% growth in Construction Spending was the firstcontraction in eight months. Residential spending continues to be dominated by single-family building andhome improvement, with the multi-family component making up only 8.1% of residential spending. Possiblyan indicator of the times, the largest declines in non-residential spending came from religious spending andconservation: -6.0% and -13.5%, respectively. While not experiencing contraction, Factory Orders wereexactly flat in November. Machinery saw the largest increase in this category at 3.0%, and non-defensecapital goods saw the largest decline at -2.9%.Vehicle Sales fell by a seasonally-adjusted annualized rate (SAAR) of 160,000 to 15.3 million units, which is just off multi-year highs. General Motors had an 18.2% market share, Ford at 15.5%, Toyota at 14.4%,Chrysler at 11.2%, and Honda at 9.8%.According to the Institute for Supply Management (ISM) Manufacturing Index, manufacturing continues towaver between contraction and expansion, ending December with a 50.7 expansion. Last
49.5reading was the lowest reading in more than three years. The ISM Non-Manufacturing Index continues toshow consistent strength, however, with a 56.1 figure in December. The employment subcomponentincreased from 50.3 to 56.3 over the month of December.The private firm
National Employment Report showed 215,000 jobs were added to private payrolls inDecember. Of these jobs 87.9% were in firms who employ over 50 people. After reporting 148,000 jobsadded in November,
figure ended 2012 on an optimistic note. Data from the Bureau of Labor
Establishment Survey showed a more tepid 155,000 jobs added during the month, of which168,000 were in the private sector. These last two data points imply government payrolls continue to shrink.The household survey, which serves as the basis for the Unemployment Rate, showed 28,000 jobs wereadded and the rate stayed steady at a revised level of 7.8%. Similarly, the broader Underemployment Rateheld at 14.4%.Those currently employed saw an uptick of 1/10 an hour in Average Weekly Hours Worked in December to34.5. Average hourly earnings increased by 0.3% and are 2.1% higher than their level a year prior.
Consumer Price Index (CPI), which is the latest data available says prices over this overlappingperiod increased 1.8%.