Strong demand for transportation and energy, which increased by 1.3% and 0.9% in August, were the primary catalysts for the 0.4% increase in the Consumer Price Index. The all-important core CPI excluding food and energy rose by a similar amount. … READ MORE >
Economics
CHART OF THE DAY: Jobless claims are persistent drag on economic recovery
Despite expectations for a decline in weekly unemployment numbers, jobless claims for the week ended Sept. 5 held steady, signaling that the climb toward economic recovery remains volatile amid the ongoing impact on the COVID-19 pandemic. … READ MORE >
Initial jobless claims arrive above expectations
First-time initial jobless claims increased by 884,000 on a seasonally adjusted basis, higher than the 850,000 anticipated, and by 857,000 on a non-seasonally adjusted basis, according to data released by the Labor Department on Thursday. … READ MORE >
RSM Brexit Stress Index update: Late summer upturn in risk
England and the European Union had agreed to an 11-month window ending Dec. 31 to produce what would normally take years of trade negotiations. If those talks were to fail, then England will face tariffs imposed by the E.U., its largest trading partner, once it is pushed out. … READ MORE >
Pandemic economics: Prospects for permanent job losses rising
There has been an alarming increase in permanent job losses over the past six months. Whether and when those jobs reappear will determine the extent of the damage to the economy and, more important, the extent to which household balance sheets and accumulated wealth are impaired. … READ MORE >
CHART OF THE DAY: Financial conditions deteriorate as stock market pulls back
U.S. financial conditions have deteriorated in recent days as investors have pulled back on riskier assets, causing the S&P 500 to shed 4.3%, the Dow Jones Industrial Average to drop 3.32% and the NASDAQ to fall 6.1% over the past three trading sessions. As these conditions have eased, the risk to the economy has grown. … READ MORE >
U.S. financial conditions tightening due to equities rout
U.S. financial conditions have tightened in recent days as investors have pulled back on riskier assets, a decline that if it continues implies a risk to the nascent U.S. economic rebound. … READ MORE >
August U.S. employment report: Strong hiring continues for fourth month
The return of workers to their jobs continued at a strong pace in August, with 1.371 million jobs added, including 238,000 temporary census workers. … READ MORE >
CHART OF THE DAY: Americans with no job for 27 weeks or more rises sharply
Labor market studies by the Federal Reserve show that individuals who experience joblessness for more than 26 weeks face increasing risk of becoming permanently detached from the labor force, contributing to structural unemployment in the economy. … READ MORE >
CHART OF THE DAY: Mixed picture for initial jobless claims in week ended Aug. 29
The number of initial jobless claims fell in the week ended Aug. 29 to a seasonally adjusted 881,000 from 1.01 million in the prior week. But data from the Labor Department, which announced changes to its methodology on Thursday to factor out pandemic distortions, doesn’t tell the whole picture. Despite the week over week decline in claims, the number of people seeking relief from other programs, including a government-sponsored pandemic relief program, were up. … READ MORE >