Economic Roundup – December 13, 2010
by Robert T. Boyer, Ph.D. on Dec.17, 2010, under Economics, General
Consumer credit saw its largest increase in more than two years during October, according to the Federal Reserve’s latest report released last week. October’s consumer credit increased at an annual rate of 1.75 percent for the month, marking the second straight monthly increase.
Non-revolving credit, such as home and student loans, increased at an annual rate of 6.75 percent to $1.59 trillion, while revolving credit, such as credit cards, decreased at an annual rate of 8.5 percent, dropping to $800 billion. This was the 26th straight monthly drop for credit cards.
The largest segment of the non-revolving debt’s growth was student loans, which may suggest that Americans are seeking degrees that could improve their job-hunting prospects.
Bearing that in mind, the Department of Labor reported last week that for the week ending Dec. 4, the advance figure for seasonally adjusted initial claims for unemployment benefits was 421,000, a decrease of 17,000 from the previous week’s revised figure of 438,000. Also, the four-week moving average was 427,500, a decrease of 4,000 from the previous week’s revised average of 431,500.
Meanwhile, wholesale performance was up according to the Census Bureau’s latest report last week. October sales of merchant wholesalers were $362.1 billion, up 2.2 percent from September’s revised level and up 13.4 percent from October 2009. Inventories of merchant wholesalers were $427.1 billion at the end of October, up 1.9 percent from September’s revised level and 9.9 percent from a year ago. This put the October inventory/sales ratio for merchant wholesalers at 1.18, in comparison to October 2009′s ratio of 1.22.
This week’s financial headlines kick off Tuesday with the Census Bureau’s retail sales data for November, which is expected to gain 0.8 percent over October. Tuesday will also see the Bureau of Labor Statistics’ release of the November producer price index, followed by its counterpart the consumer price index on Wednesday. Both are expected to shift little from October’s figures with the PPI forecast to increase by 0.5 percent and the CPI by 0.2 percent.
Also expected to be released on Wednesday are the Federal Reserve’s figures for November’s industrial protection and capacity utilization, which respectively report the output of U.S. factories, mines and utilities, and how much more they could have produced if needed. Production is expected to gain 0.3 percent over October. November capacity is forecast to ring in at 75 percent of production capacity.
On Thursday, the Census Bureau will release its figures for November housing construction starts and building permits, which are expected to reach 545,000 and 570,000, respectively.
[This report is sponsored by the Grandmaster Store for Martial Arts Supplies.]
Click for San Diego Real Estate information and homes for sale.
