The status of durable goods in May 2017 appears to be up for debate. Once more there is major disagreement between the seasonally-adjusted figures and those unadjusted. In the estimation of the latter, May was a relatively good month for US manufacturing. Orders were up 7.3% year-over-year, the highest growth rate in nearly three years. It continues the track of [...]
When the price of oil first collapsed at the end of 2014, it was characterized widely as a “supply glut.” It wasn’t something to be concerned about because it was believed attributable to success, and American success no less. Lower oil prices would be another benefit to consumers on top of the “best jobs market in decades.” That may have [...]
Industrial Production rose sharply in April 2017, up nearly 1% month-over-month (seasonally-adjusted). It was the largest single month increase since February 2014 during the depths of the Polar Vortex. Steady contributions from the oil sector as well as a rebound (of sorts) in Motor Vehicle Assemblies added to the gains. Year-over-year, IP was up just 2.2% in April despite the [...]
The rebound in commodity prices is not difficult to understand, perhaps even sympathize with. With everything so depressed early last year, if it turned out to be no big deal in the end then there was a killing to be made. That’s what markets are supposed to do, entice those with liquidity to buy when there is blood in the [...]
The stock market has its earnings season, the regular quarterly reports of all the companies that have publicly traded stocks. In economic accounts, there is something similar though it only happens once a year. It is benchmark revision season, and it has been brought to a few important accounts already. Given that this is a backward looking exercise, that this [...]
As we move further into 2017, economic statistics will be subject to their annual benchmark revisions. High frequency data such as any accounts published on or about a single month is estimated using incomplete data. It’s just the nature of the process. Over time, more comprehensive survey results as well as upgrades to statistical processes make it necessary for these [...]
There are a few parts of the payroll reports that do make sense without requiring alternative interpretation. Among these face value statistics is the estimate for manufacturing payrolls. The BLS figures that employment in the manufacturing sector peaked in July 2015 and has been declining ever so gently since then. Total job losses are just 61k over that year and [...]
China’s trade statistics were improved in November, further fueling the global “reflation” dreams. Imports rose 6.7% year-over-year, the second increase in the past four months (August) and the best since September 2014. Exports were nearly flat, up the tiniest fraction, 0.1%. That was the second time this year exports were positive. Again, these numbers have been very well received: “The [...]
If you are not an economist bound by dogma, or a member of the media forbidden from using opinion of all but the finest (sounding) credentials, there is no mystery. I am as tired of writing about it as you are of reading it. The mainstream is by convention of the business cycle forced into linear extrapolations. Therefore, economic accounts [...]
There can be little doubt now outside of orthodox economics that the global economy is actually slowing, not accelerating as has been predicted. Economists themselves, however, continue to claim that things are getting better when the data strongly suggests otherwise. The latest depressing figures are from a pair of (orthodox) supranational organizations. First, the World Trade Organization (WTO) drastically reduced [...]
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