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Economic Perspectives
ISM Non-Manufacturing Index Up 2.4 Points to 52.0
In April, the ISM non-manufacturing index rose 2.4 points to 52.0, the third consecutive increase. Though the value was still lower then the 53 to 54 range, where the index read during the fall, this was the first month since December where it was above the expansion threshold of 50. Notable components of the index include:
Business Activity: Down 1.3 Points to 50.9
Employment: Up 3.9 Points to 50.8
New Orders: Down 0.1 Point to 50.1
Backlogged Orders: Up 2.5 Points to 50.0
Inventories: Down 4.5 Points to 47.0
08.05.05 (Source: Institute for Supply Management)
Federal Open Market Committee
The FOMC decided to cut its target rate an addition 25 basis points to 2.25 percent. The discount window was also cut by 0.25 percent point to 2.50. In its statement, the committee stated that "Financial markets remain under considerable stress" as well as that recent information "indicates a deepening of the housing contraction and well as some softening in labor markets." It foresees the present and past monetary action as promoting moderate growth. However, the committe also ackowledges that some inflationary indicators were increasing and warrented caution moving forward. There were two votes against the funds rate cut, preferring no cut, and the discount rate cut was unanimous.
(Target 2.25)
Upcoming Meeting: June 2, 2008
08.04.30 (Source: FOMC Press Release)
Assets of Money Market Mutual Funds
(billions of dollars)
08.03.27 (Source: Investment Company Institute)
Mortgage Applications Decrease 28.7 Percent
The Market Composite Index, a measure of mortgage loan application volume, was 688.3, a decrease of 28.7 percent on a seasonally adjusted basis from 965.9 one week earlier. On an unadjusted basis, the Index decreased 28.1 percent compared with the previous week and was up 4.8 percent compared with the same week one year earlier.
08.03.02 (Source: Mortgage Bankers Association)
Jobless Claims Increase by 38,000
In the week ending March. 29, the advance figure for seasonally adjusted initial claims was 417,000, an increase of 38,000 from the previous week's revised figure of 369,000. The 4-week moving average was 374,500, an increase of 15,750 from the previous week's revised average of 358,750.
08.03.03 (Source: U.S. Department of Labor)
Oil Production Up 72,000 Barrels
U.S. crude oil refinery inputs averaged 14.2 million barrels per day during the week ending March 28, up 72,000 barrels per day from the previous week's average. Refineries operated at 82.4 percent of their operable capacity last week.
Gasoline production moved higher compared to the previous week, averaging 8.6 million barrels per day. Distillate fuel remained flat, averaging 3.9 million barrels per day.
08.03.02 (Source: Energy Information Administration)
Consumer Credit Up 3.3 Percent in January
The Federal Reserve reported that consumer credit increased 3.3 percent in June at an seasonally adjusted annual rate, after increasing a revised 1.8 percent in Decmber. Revolving credit increased 7.0 percent and non-revolving credit increased 1.1 percent.
| ($ billions) |
Dec (r) |
Jan(p) |
| Revolving Growth (SAAR) |
2.8 % |
7.0 % |
| Non-Revolving Growth (SAAR) |
1.1 % |
1.1 % |
| Commercial Banks and Thrifts (NSA) |
$895.5 |
$900.1 |
| Commercial Banks and Thrifts Revolving (NSA) |
$398.9 |
$382.6 |
| Commercial Banks and Thrifts Non-Revolving (NSA) |
$496.6 |
$517.6 |
08.03.07 (Source: Federal Reserve)
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