Consumers Grow More Cautious in August–Vanguard’s Economic Week in Review

Posted on September 16, 2011. Filed under: -- Economic Week In Review | Tags: , |


 

It’s been a while since I posted these, so I thought I’d share Vanguard’s Economic Week in Review for this week. Enjoy!

Consumers grew more cautious in August amid wild stock market swings, zero
job growth, and heightened concerns the economy had weakened. While business
inventories and industrial production climbed, retail sales were flat as
consumer prices rose higher than expected. For the week ended September 16, the
S&P 500 Index rose 5.4% to 1,216 (for a year-to-date total return—including
price change plus dividends—of about –1.9%). The yield on the 10-year U.S.
Treasury note rose 15 basis points to 2.08% (for a year-to-date decrease of 122
basis points).

Consumer prices jump sharply

The Consumer Price Index (CPI) rose 0.4% in August, much more than expected,
led by increases in gasoline and food prices. Less food and energy, core
inflation surpassed its year-ago rate by nearly 2.0%—the upper boundary of the
Federal Reserve’s target inflation rate—as vehicle and apparel prices continued
to rise.

“There aren’t many elements to support these upper-range core CPI readings
going forward,” Vanguard senior economist Roger Aliaga-Díaz said. “There’s no
evidence of monetary roots to this inflation reading, as banks continue to build
up cash reserves and lending remains stagnant. Thus, the Fed may not feel
constrained to act based on this inflation measure.”

Meanwhile, prices for finished goods in August were unchanged. Analysts had
been predicting a significant decline. Prices for finished energy goods dropped
1.0%, the third consecutive monthly decline. Excluding food and energy, core
prices for finished goods rose 0.1%. Producer price inflation for service
industries also gained slightly.

“There’s no evidence of production cost pressures, either,” Mr. Aliaga-Díaz
continued, “as producer price inflation and import price inflation remain
moderate. With slower global economic growth ahead, we may well see core
inflation gradually receding.”

Inventories and production continue their upward climb

Business inventories grew for the 19th straight month in July, although the
gain was less than expected. Now that the Japan supply-chain disruptions have
faded, analysts had been anticipating a significant rise in auto inventories
rather than the 0.4% increase reported.

Industrial production rose 0.2% in August—its fourth consecutive monthly
gain. Combined with a solid 0.9% July increase, average industrial production
for both months was 4.6% (annualized) above the second-quarter average. Mining
output rose a sharp 1.2%, its sixth consecutive monthly increase and the
sector’s highest output since 1998. Manufacturing also continued to rise, led by
continued growth in automobile production. Overall industrial production
strength was offset by weakness in the utility sector, which fell 3% in August,
reversing its 2.8% July increase.

Retail sales fall flat in August

Consumers apparently hunkered down during August as retail sales were
unchanged. Miscellaneous and clothing retail sales dropped most, declining 2.2%
and 0.7%, respectively. Gasoline sales rose, although by much less than they had
in July. Meanwhile, sporting goods stores saw the biggest advance—a 2.4%
increase.

The economic week ahead

House building and sales reports are set for release next week: new
residential construction on Tuesday and existing-home sales on Wednesday. The
Federal Open Market Committee’s monetary policy report will also appear
Wednesday, and leading economic indicators are scheduled for Thursday.

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Economic Week in Review: Prices fall as global slump advances for week ending Friday January

Posted on January 16, 2009. Filed under: -- Economic Week In Review | Tags: |


By Molly Greaves via Vanguard

angrybear——————————————————————–
Economic Week in Review: Prices fall as global slump advances
———————————————————————

A bevy of bleak economic reports marked the continued worldwide economic
slump, from lower industrial production and retail sales in the United
States to reduced international demand for U.S. exports. The economic
slowdown, coupled with the downtrend in energy prices, continued to push
consumer and wholesale prices lower for the fifth straight month. For the
week, the S&P 500 Index fell 4.5% to 850.1 (for a year-to-date total return
of -5.78%). The yield of the 10-year U.S. Treasury note declined 7 basis
points to 2.36% (for a year-to-date increase of 11 basis points).

To read Vanguard(R) Economic Week in Review in its entirety, go to:
http://www.vanguard.com/visit/econweek011609

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Economic Week in Review: Economy gets back to work Week ending Friday August 29

Posted on August 29, 2008. Filed under: -- Economic Week In Review | Tags: |


By Molly Greaves

 

Economic Week in Review: Economy gets back to work
——————————————————————-

Economic indicators worked overtime this week to deliver good news
before the Labor Day holiday. Second-quarter growth in the gross
domestic product (GDP) was revised upward more than anticipated,
orders for big-ticket items increased, and consumer confidence
grew. Even the depressed housing market perked up, signaling
that its prolonged weakness may be stabilizing, although it
remains too soon to declare that the corner has been turned.
In the financial markets, the S&P 500 Index slipped –0.7% to
1283 (for a year-to-date total return of –11.4%). The yield
of the 10-year U.S. Treasury note dropped 4 basis points to
3.83% (for a year-to-date decrease of 21 basis points).

To read Vanguard(R) Economic Week in Review in its entirety, go to:
http://www.vanguard.com/visit/econweek082908

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Economic Week in Review: Inflation heats up as summer cools…Week ending Friday August 22, 2008

Posted on August 22, 2008. Filed under: -- Economic Week In Review | Tags: |


By Molly Greaves

——————————————————————-
Economic Week in Review: Inflation heats up as summer cools
——————————————————————-

Good news was hard to find in this week’s economic reports.
Inflation at the wholesale level rose at a worrisome pace in July,
even excluding higher prices for energy and food. One bright spot
was the decrease in initial claims for unemployment insurance.

In the financial markets, for the week the S&P 500 Index slipped
–0.5% to 1292 (for a year-to-date total return of –10.8%).
The yield of the 10-year U.S. Treasury note rose 3 basis points
to 3.87% (for a year-to-date decrease of 17 basis points).

To read Vanguard(R) Economic Week in Review in its entirety, go to:
http://www.vanguard.com/visit/econweek082208

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Economic Week in Review: Inflation hurts consumers and retailers alike Friday August 15, 2008

Posted on August 15, 2008. Filed under: -- Economic Week In Review | Tags: |


By Molly Greaves

 

Economic Week in Review: Inflation hurts consumers and retailers alike
———————————————————————-

Despite a drop in energy prices, inflation rose during the month of
July at a much higher rate than analysts had expected. Retail sales
fell as consumers tightened their belts. On a positive note, June’s
trade deficit narrowed for the second month in a row. For the week,
the S&P 500 Index also rose 0.2% to 1,298 (for a year-to-date total
return of –10.4%). The yield of the 10-year U.S. Treasury note
dropped 10 basis points to 3.84% (for a year-to-date decrease of 20
basis points).

To read Vanguard(R) Economic Week in Review in its entirety, go to:
http://www.vanguard.com/visit/econweek081508

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Economic Week in Review: Fed pause sparks market rally week ending Friday August 8, 2008

Posted on August 9, 2008. Filed under: -- Economic Week In Review, -- Uncategorized | Tags: |


By  Molly Greaves with the datat brought to you via Vanguard, where I do my paper asset investing.

Economic Week in Review: Fed pause sparks market rally

——————————————————-

As expected, the Federal Reserve kept its target federal funds rate
at 2.0% on Tuesday. The news spurred a major stock market rally as the
S&P rose 2.9% on the day of the announcement. Other economic headlines
for the week were more mixed. Positive news included June factory
orders, which increased at their fastest pace in six months and
productivity, which rose at an impressive rate given current economic
conditions. On the negative side, consumer debt saw its largest
monthly increase in more than six months while modest improvements in
the performance of the service sector did little to reassure
investors. For the week, the S&P 500 Index also rose 2.9% to 1,296
(for a year-to-date total return of -10.6%). The yield of the 10-year
U.S. Treasury note dropped 3 basis points to 3.94% (for a year to date
decrease of 10 basis points).

To read Vanguard(R) Economic Week in Review in its entirety, go to:
http://www.vanguard.com/visit/econweek080808

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Economic Week in Review: Economy still under the weather

Posted on July 26, 2008. Filed under: -- Economic Week In Review | Tags: |


By Molly Malone

 

Whoa baby, it’s already Friday. Holy smokes. I had a long day at the Trump School of Real Estate, but it sure was full of learning, which I always love. Class tomorrow–and yes, class on Saturday, Sunday too actually– should be just as good.

Here’s the Economic Recap for the Week in the words of the folks at Vanguard:

———————————————————
Economic Week in Review: Economy still under the weather
———————————————————

Economic reports this week revealed an economy still struggling and
far from recovery. Consumer spending remains constrained as soaring
food and gasoline prices continue to eat up household income. Tighter
credit requirements and unease in the financial markets also are
dampening sales of new and existing homes. One bright spot this week
came from durable-goods manufacturers, which reported an unexpected
increase in demand–a possible sign that companies plan to invest in
capital equipment despite the troubles in the financial markets this
year. For the week, the S&P 500 Index declined –0.2% to 1,258 (for a
year-to-date total return of –13.4%). The yield of the 10-year U.S.
Treasury note rose 2 basis points to 4.13% (for a year-to-date
decrease of 9 basis points).

To read Vanguard(R) Economic Week in Review in its entirety, go to:
http://www.vanguard.com/visit/econweek072508

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Economic Week in Review: Inflation sizzles, retail sales fizzle–week ending Friday July, 17

Posted on July 19, 2008. Filed under: -- Economic Week In Review, -- Uncategorized | Tags: |


By Molly Greaves
This week, in case you missed it, the Dow Jones dropped 120 points falling below 11,000 points for the first time since July 2006. They ended the day at 10,977.68; pretty close to the 52-week low, 10,827.71. Fortunately it re-gained some momentum ending at 11,496.57, up +49.91/+0.44% this Friday at close. 
Below is a re-cap that I received from Vanguard. I receive this each Friday, and I will continue to post them for you here.  I also recommend checking out Vanguard too of course.
Thank you for checking out my blog =)
—————————————————————-
Economic Week in Review: Inflation sizzles, retail sales fizzle
—————————————————————-
Both wholesale and retail inflation rose at a worrisome pace in June,
fed mainly by higher energy prices. And, in congressional testimony
this week, Federal Reserve Chairman Ben Bernanke said that the “upside
risks to the inflation outlook have intensified lately” because of
higher commodity prices. Indeed, energy prices have boosted the
gasoline portion of retail sales. Even so, retail sales were tepid
despite the distribution of federal economic stimulus checks. In the
financial markets, the S&P 500 Index rose 1.7% to 1,261 (for a
year-to-date total return of -13.2%). The yield of the 10-year U.S.
Treasury note rose 15 basis points to 4.11% (for a year-to-date
decrease of 7 basis points). 

 

To read Vanguard(R) Economic Week in Review in its entirety, go to:
http://www.vanguard.com/visit/econweek071808

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Economic Week in Review: Summer Doldrums Continue–Week Ending Friday July 11, 2008

Posted on July 13, 2008. Filed under: -- Economic Week In Review | Tags: , , , |


posted for your information by Molly Greaves. Information comes to you via Vanguard. 

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Economic Week in Review: Summer doldrums continue
————————————————-

It was a light week for economic reports, giving analysts a short
mid-summer breather. On Wall Street, the stock market’s swoon
deepened, with the Dow Jones Industrial Average briefly dipping below
11,000 for the first time in two years. The S&P 500 Index fell 1.85%
to 1,239 (for a year-to-date total return of –14.6%). The yield of
the 10-year U.S. Treasury note fell 3 basis points to 3.94% (for a
year-to-date decrease of 10 basis points).

To read Vanguard(R) Economic Week in Review in its entirety, go to:
http://www.vanguard.com/visit/econweek071108

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Consumers Grow Gloomier—Economic Review Week Ending June 27, 2008

Posted on July 6, 2008. Filed under: -- Economic Week In Review, -- Uncategorized | Tags: , , |


posted by Molly Greaves—because I care!

This week’s economic reports showed little signs of relief as the
consumer confidence index fell even lower than expected. Consumers
continue to be concerned over rising unemployment rates, historically
high gas prices, and the housing slump. On a brighter note, sales of
existing homes were up for the month, albeit still far below
historical averages. In other news, the Federal Reserve Board’s Open
Market Committee met this week and kept the target funds rate at 2.0%,
putting an end to an eight-month-long string of rate changes. For the
week, the S&P 500 Index fell 3.0% to 1,279 (for a year-to-date total
return of –12%). The yield of the 10-year U.S. Treasury note fell 17
basis points to 3.99%.

To read Vanguard(R) Economic Week in Review in its entirety, go to:
http://www.vanguard.com/visit/econweek062708

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