Category: United States

American Economic Indicators Flash Red

A number of economic indicators released recently point to a weakening American economy.  Americans are buying fewer services, manufacturing activity is down, and America’s trade deficit—along with the rest of the world—is growing.

In June, services demand fell, according to a new study by Markit Economics. The Markit flash services Purchasing Managers Index (PMI) saw a slight increase to 51.3, which Markit calls a “subdued” increase from the prior month’s 51.2 reading.

U.S. Housing Data Disappoints

A number of studies point to growing weakness in America’s housing market.  Existing home sales grew just 1.8% in May, shy of analyst estimates. Just 5.53 million existing homes were sold in May, up slightly from April but below consensus estimates of 5.57 million units. On a year-over-year basis, existing home sales rose 4.5%.

American Home Prices Set to Rise, Jobs to Fall

New data suggests home prices in America will keep climbing, despite continued weakness in the labor market causing unemployment to rise.  Builders are increasingly confident about the single-family home market, according to a new study by the National Association of Homebuilders. The NAHB’s Housing Market Index rose by 2 points in June because of more buying activity and a limitation on places to build new homes.

Interest Rate Eyed as Federal Reserve Meeting Looms

Markets are becoming increasingly skeptical of the Federal Reserve as the world’s most important central bank heads into a meeting to decide on interest rates.

After several weeks of strong hints to the world that interest rates were going upwards, both economists and market participants are growing increasingly skeptical that the Fed will actually raise rates.

Weak Jobs, Consumer Activity Hint at Weakening American Economy

A disappointing increase in job openings and a poor increase in consumer credit indicate Americans are increasingly struggling to make ends meet.  In April, consumer credit rose just $13.4 billion, far below the $18 billion expected and less than half of March’s $28.4 billion, according to new data released by the Federal Reserve.

Analyst expectations of sharply increasing consumer credit usage were based on previous data that showed strong retail sales, which is often financed by credit cards.

Worsening Labor Conditions Spook Federal Reserve

Deterioration in America’s job market are making the Federal Reserve reverse course on its plans to raise borrowing costs.  In May, several chief Fed officials gave public speeches and interviews urging markets to prepare for an interest rate hike.

U.S. Job Market Suffers a Disaster

A new report on the job market in America is being called a “disaster” by several economists, as weak job growth and discouraged workers contribute to a bleaker economic outlook.