Uncategorized Archive

Factory orders, Corp spending, Equity comment

You can see from the longer term charts not much to write home about here: Highlights Increasing strength in capital goods is the good news in today’s factory orders report where a headline 1.2 percent gain is 2 tenths above Econoday’s consensus. The split between the report’s two main components shows a ...Read More

Vehicle sales, Trump comments, Greek comments

Nice spike after the hurricane lull: Highlights In the strongest monthly sales performance in 12 years, unit vehicle sales shot up to a hurricane-fueled 18.6 million annualized rate in September vs a hurricane-depressed 16.1 million rate in August. September’s rate points squarely at replacement demand following Hurricane Harvey’s flooding of Houston just ...Read More

Trade, Jobless claims, Kelton NYT op ed

Late in 2014, when oil prices collapsed along with oil capital expenditures, it was widely proclaimed to be an unambiguous positive for the US economy. This included a forecast for a lower trade deficit due to lower oil prices. However, I suggested that, to the contrary, the trade gap might, if anything, ...Read More

PR note, ADP, Holiday sales, Euro area sales taxes, Erdogan on rates, Tillerson comment, PR bonds

Just noticed this. PR has had over 500,000 move to the states for economic reasons: For many Puerto Rico residents, it’s time to leave the island Note: Puerto Rico is not included in the national employment report. FYI: Highlights Hurricanes didn’t scramble ADP’s sample too much in September with their private payroll ...Read More

State Index, Construction spending, PMI and ISM

More data that shows we may already be in recession, and in line with the deceleration in bank lending: Large downward revision to last month was larger than this month’s gain: Highlights The construction spending report is often volatile and today’s results are an example. The headline is up a solid 0.5 ...Read More

Credit check, Expectations vs spending, Inflation, Comments on Fed policy

You may be hearing about ‘spike’ in lending last week, so I’ll try to give you some perspective using commercial and industrial lending charts before just showing year over year changes: In this 10 year chart you can see how the growth in lending suddenly slowed back in November 2016. You can ...Read More

Personal income and spending, Consumer sentiment

July Personal income revised down to .3 and August only .2 further confirms income growth- the driver of consumption- has slowed down in line with the deceleration in bank lending, and the same seems to be the case with spending, with weak price indicators further confirming the same weak demand narrative. And ...Read More

GDP revision, Inventories, Corporate profits, Trump fundraiser

Revised higher due to inventory building- not good- and weak prices also tend to indicate low demand. And note how q3 gdp estimates have been coming down as well: Highlights Second-quarter GDP proved strong, at an as-expected 3.1 percent annualized rate for the third estimate driven by consumer spending at a 3.3 ...Read More

New home sales, Pending home sales, Durable goods orders, Children

Heading south in line with the deceleration of mortgage lending: Highlights Weakness in the South pulled down new home sales in August as it did in last week’s existing home sales report. New home sales fell sharply in the month to a 560,000 annualized rate vs an upward revised rate of 580,000 ...Read More

Vehicle sales, Homebuyer affordability, Bank loans, FX reserves, Growth index, Rail traffic

Looking like an uptick here, some of it weather related? From WardsAuto: Forecast: SAAR Expected to Surpass 17 Million in September A WardsAuto forecast calls for U.S. light-vehicle sales to reach a 17.5 million-unit seasonally adjusted annual rate in September, following August’s 16.0 million SAAR and ending a 6-month streak of sub-17 ...Read More