Economic Reports 10/9 - 10/16/06
Summary: The widening twin deficits continue to act as a drag on economic expansion. Prices are still rising. Consumer spending on durable goods & big ticket items is decreasing. John Q. is still spending on the basics.
Narrowing Treasury Deficit FY06: $247B deficit, down from an estimated $521B, and a record $319B in 2005. Hailed by the Republicans and press as a major improvement and the lowest in 4 years.
Inside the number: Outlays continue to outstrip revenues. Revenues +11.8% to $2.407 trillion, while outlays +7.4%, to $2.654 trillion.
The Republican controlled Congress have raised the statutory debt limit four times in five years, adding more than $3 trillion to the national debt, which stands at $8.6 trillion.
Aug Record Trade Deficit: +2.7% to $69.9B vs prior $68B, a new record Full Report
Inside the number: YTD, the trade gap is $522.8B vs $457B over the same period last year when the deficit reached a record annual level of $716.7B. August imports + 2.4% to $192.3B, while exports+2.3% to $122.4B, both new records.
Rising Sept. Import Prices -2.1%; Export Prices -0.5% Full Report
Inside the number: Do not be fooled, prices are still rising with nonpetroleum industrial supplies and materials rising +0.4%, resulting in ex oil import prices rising +0.1% vs prior +0.5%.
Ex ag export prices fell -0.5% vs prior 0.4% further fueling the trade deficit. The deceiving drop in prices was fueled by a 10.3% drop in imported oil prices.
Growing Aug Business Inventories +0.6% vs prior +0.5% Full Report
Inside the number: A slowdown in big ticket items. Retail auto inventories +0.5%, while sales fell 0.4% despite major sale incentives. Motor vehicle inventories are up 14.1% in the past year.
Growing Aug Wholesale Inventories: Inventories and sales +1.1% Full Report
Inside the number: A slowdown in durable goods sales +0.9%, while inventories grew +1.5%.
Capital spending down with commerical equipment & supplies sales +0.7%, while inventories grew 1.2%. The housing sector slowing with lumber & construction materials sales -0.3%, while inventories grew +1.1%.
U of Mich Consumer Sentiment UP 92.3 vs prior 85.4%. How happy are those consumers??
Rising Sept Retail Sales -0.4% vs prior +0.1%
Inside the number: ex auto sales -0.5% vs prior +0.2%. Is the housing sector slowdown causing a consumer pullback??
Durable goods & big ticket item spending is down, but John Q. still has to shop for the basics.
The drop was led by a 9.3% drop in gasoline sales, ex gas retail sales were UP +0.6%. Ex auto & gas sales were UP +0.8%.
Narrowing Treasury Deficit FY06: $247B deficit, down from an estimated $521B, and a record $319B in 2005. Hailed by the Republicans and press as a major improvement and the lowest in 4 years.
Inside the number: Outlays continue to outstrip revenues. Revenues +11.8% to $2.407 trillion, while outlays +7.4%, to $2.654 trillion.
The Republican controlled Congress have raised the statutory debt limit four times in five years, adding more than $3 trillion to the national debt, which stands at $8.6 trillion.
Aug Record Trade Deficit: +2.7% to $69.9B vs prior $68B, a new record Full Report
Inside the number: YTD, the trade gap is $522.8B vs $457B over the same period last year when the deficit reached a record annual level of $716.7B. August imports + 2.4% to $192.3B, while exports+2.3% to $122.4B, both new records.
Rising Sept. Import Prices -2.1%; Export Prices -0.5% Full Report
Inside the number: Do not be fooled, prices are still rising with nonpetroleum industrial supplies and materials rising +0.4%, resulting in ex oil import prices rising +0.1% vs prior +0.5%.
Ex ag export prices fell -0.5% vs prior 0.4% further fueling the trade deficit. The deceiving drop in prices was fueled by a 10.3% drop in imported oil prices.
Growing Aug Business Inventories +0.6% vs prior +0.5% Full Report
Inside the number: A slowdown in big ticket items. Retail auto inventories +0.5%, while sales fell 0.4% despite major sale incentives. Motor vehicle inventories are up 14.1% in the past year.
Growing Aug Wholesale Inventories: Inventories and sales +1.1% Full Report
Inside the number: A slowdown in durable goods sales +0.9%, while inventories grew +1.5%.
Capital spending down with commerical equipment & supplies sales +0.7%, while inventories grew 1.2%. The housing sector slowing with lumber & construction materials sales -0.3%, while inventories grew +1.1%.
U of Mich Consumer Sentiment UP 92.3 vs prior 85.4%. How happy are those consumers??
Rising Sept Retail Sales -0.4% vs prior +0.1%
Inside the number: ex auto sales -0.5% vs prior +0.2%. Is the housing sector slowdown causing a consumer pullback??
Durable goods & big ticket item spending is down, but John Q. still has to shop for the basics.
The drop was led by a 9.3% drop in gasoline sales, ex gas retail sales were UP +0.6%. Ex auto & gas sales were UP +0.8%.
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