Economic Reports 07/13/09
US Trade Deficit May
-$26B vs -$29.2B; Good news, exports rebounded 1.6% while imports declined another 0.6%. Year-on-year, overall exports -21.3% imports – 31%.
The negative news is that the lower imports indicate weak domestic demand.
Import & Export Prices June
Export +1.1% Yoy -6.4%; Import +3.2% Yoy -17.4%.
Prices for imported petroleum spiked more than 20% for the biggest gain in 10 years. Excluding oil, import prices rose 0.2%.
The pass through of oil costs through other products and may also reflect in part softness in the dollar...
which did sink slightly in the month to raise the dollar cost of foreign imports.
Imports of capital goods actually fell 0.1% while ag export prices rose 4.8%.
Again the soft dollar at play, as demand for grains has increased as investors seek hedges against the risk of inflation.
ISM Services June
47 vs 44 Good news, a nearly 7-1/2 point jump in the business activity index, which indicates improved output, along with a nearly 4-1/2 point jump in the employment index to 43.4.
Bad news, non-manufacturers, like manufacturers, are drawing down inventories aggressively with the index down 2 points to 45.0.
Draws indicate that firms are still leery over the prospects for sustained economic growth.
Wholesale Trade May
-0.8% vs -1.4%; Inventory liquidation has not slowed yet even though some indications...
including big back-to-back gains in durable goods orders, point to increasing production.
Firms are not yet confident enough in the outlook to begin restocking.
Initial Jobless Claims 07/04
Good news, -52K at 565K; 4 week MA -10K at 606K. Bad news, continuing claims +159K at 6.883M; 4 week MA +12K at 6.769M
-$26B vs -$29.2B; Good news, exports rebounded 1.6% while imports declined another 0.6%. Year-on-year, overall exports -21.3% imports – 31%.
The negative news is that the lower imports indicate weak domestic demand.
Import & Export Prices June
Export +1.1% Yoy -6.4%; Import +3.2% Yoy -17.4%.
Prices for imported petroleum spiked more than 20% for the biggest gain in 10 years. Excluding oil, import prices rose 0.2%.
The pass through of oil costs through other products and may also reflect in part softness in the dollar...
which did sink slightly in the month to raise the dollar cost of foreign imports.
Imports of capital goods actually fell 0.1% while ag export prices rose 4.8%.
Again the soft dollar at play, as demand for grains has increased as investors seek hedges against the risk of inflation.
ISM Services June
47 vs 44 Good news, a nearly 7-1/2 point jump in the business activity index, which indicates improved output, along with a nearly 4-1/2 point jump in the employment index to 43.4.
Bad news, non-manufacturers, like manufacturers, are drawing down inventories aggressively with the index down 2 points to 45.0.
Draws indicate that firms are still leery over the prospects for sustained economic growth.
Wholesale Trade May
-0.8% vs -1.4%; Inventory liquidation has not slowed yet even though some indications...
including big back-to-back gains in durable goods orders, point to increasing production.
Firms are not yet confident enough in the outlook to begin restocking.
Initial Jobless Claims 07/04
Good news, -52K at 565K; 4 week MA -10K at 606K. Bad news, continuing claims +159K at 6.883M; 4 week MA +12K at 6.769M
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