Key Economic Indicators – June 12, 2017

·      New orders for manufactured goods decreased 0.2% in April, following a 1.0% increase in the previous month. Shipments increased less than 0.1%, following a 0.2% decrease in the previous month. Year-to-date new orders were up 4.4%, and shipments were up 4.1%.

·      Sales of merchant wholesalers in April were down 0.4% from the previous month, but were up 7.3% from April of 2016. Sales of durable goods were up 0.3% in February, while sales of nondurable goods were down 1.1%. Inventories of merchant wholesalers were down 0.5% from the previous month, but were up 1.6% from April 2016.  The April inventories/sales ratio was 1.28, compared with 1.35 a year ago.

·      U.S. selected services total revenue for the first quarter of 2017, not adjusted for seasonal variation or price changes, was $3,569.6 billion, a decrease of 1.3% from the fourth quarter of 2016, and up 6.3% from the first quarter of 2016. 

·      U.S. manufacturing corporations’ seasonally adjusted after-tax profits in the first quarter of 2017 totaled $146.5 billion, up $3.5 billion from the after-tax profits of $142.9 billion recorded in the fourth quarter of 2016, and up $24.0 billion from the after-tax profits of $122.5 billion recorded in the first quarter of 2016.  

·      Seasonally adjusted after-tax profits of U.S. retail corporations with assets of $50 million and over totaled $21.7 billion, down $6.6 billion from the $28.3 billion in the fourth quarter of 2016, but up $1.7 billion from the $20.0 billion recorded in the first quarter of 2016.

·      Non-farm business sector labor productivity was unchanged during the first quarter of 2017, following a 1.8% increase in the previous quarter, according to the U.S. Bureau of Labor. Unit labor costs increased 2.2%, following a 4.6% decrease in the previous quarter. Productivity in the non-farm business sector increased 1.2% from the first quarter of 2016, while unit labor costs increased 1.1%.

·      The advance figure for initial claims for unemployment insurance decreased 10 thousand to 245 thousand in the week ending June 3. The 4-week moving average was 242 thousand, an increase of 2.25 thousand from the previous week’s average. The advance number for seasonally adjusted insured unemployment (ongoing) during the week ending May 27 was 1,917 thousand, a decrease of 2 thousand from the previous week’s revised level. The 4-week moving average was 1,914.75 thousand, a decrease of 0.75 thousand from the previous week’s revised average. This was the lowest level for this average since January 12, 1974 when it was 1,881 thousand.

·      The number of job openings increased to a series high of 6.0 million on the last business day of April, according to the U.S. Bureau of Labor Statistics. Hires decreased to 5.1 million, while separations edged down to 5.0 million. Over the 12 months ending in April, hires totaled 62.9 million and separations totaled 60.7 million, yielding a net employment gain of 2.2 million. These totals include workers who may have been hired and separated more than once during the year.

·      Employer costs for employee compensation averaged $35.28 per hour worked in March 2017, according to the U.S. Bureau of Labor Statistics. Wages and salaries averaged $24.10 per hour worked and accounted for 68.3% of these costs, while benefits averaged $11.18 and accounted for the remaining 31.7%.Private industry employer costs for paid leave averaged $2.30 per hour worked or 6.9% of total compensation, supplemental pay averaged $1.17 (3.5%), insurance benefits averaged $2.65 (8.0%), retirement and savings averaged $1.34 (4.0%), and legally required benefits averaged $2.60 per hour worked or 7.8%.The average cost for health insurance benefits was $2.50 per hour worked in private industry (7.6% of total compensation) in March 2017.

·      From December 2015 to December 2016, employment increased in 280 of the 344 largest U.S. counties, according to the U.S. Bureau of Labor Statistics. The U.S. average weekly wage decreased 1.5% over the year, declining to $1,067 in the fourth quarter of 2016. This is one of only eight declines in the history of the series, which dates back to 1978. The 1.5% decline in average weekly wages was the largest decline since fourth quarter 2011, when average weekly wages decreased by 1.7%.

·      The net worth of households and nonprofits rose to $94.8 trillion during the first quarter of 2017.

·      Domestic nonfinancial debt outstanding was $47.5 trillion at the end of the first quarter of 2017, of which household debt was $14.9 trillion, nonfinancial business debt was $13.7 trillion, and total government debt was $18.9 trillion.

·      Domestic nonfinancial debt growth was 1.4% at a seasonally adjusted annual rate in the first quarter of 2017, down from an annual rate of 2.8% in the previous quarter. Household debt increased at an annual rate of 3.2%, while nonfinancial business debt rose at an annual rate of 6.2%. Federal government debt decreased at an annual rate of 3.3% in the first quarter, while state and local government debt contracted at an annual rate of 3.5%.

·      April consumer credit outstanding increased at an annual rate of 2.6%. Revolving credit increased 1.8%, while non-revolving credit increased 2.9%.

·      The results of Freddie Mac’s Primary Mortgage Market Survey showed average fixed mortgage rates falling. The 30-year fixed mortgage rate averaged 3.89% for the week ending June 8, down from last week when it averaged 3.94%. A year ago at this time, 30-year fixed mortgage rate averaged 3.60%. The 15-year fixed mortgage rate averaged 3.16% for the week ending June 8, down from last week when it averaged 3.19%. A year ago at this time, 15-year fixed mortgage rate averaged 2.87%.

·      Mortgage applications increased 7.1% from a week earlier, according to data from Mortgage Bankers Association’s (MBA) Weekly Applications Survey for the week ending June 2nd.

·      In May, the Institute for Supply Management’s (ISM) non-manufacturing survey results indicated growth in the non-manufacturing business activity for the 89th consecutive month. Seventeen non-manufacturing industries reported growth, and one sector reported contraction in activity.

·      The Chicago Fed’s National Financial Conditions Index (NFCI) ticked up to negative 0.82 in the week ending June 2. The index was negative 0.83 a week ago, and negative 0.66 a year ago. The risk sub-index ticked down from the previous week, while the credit and leverage sub-indexes ticked up; the nonfinancial leverage sub-index remained unchanged. The adjusted Index (ANFCI) edged down to negative 0.41, from negative 0.39 in the previous week.

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