Industrial Production Increases 0.4% In July

U.S. industrial production increased 0.4% in July after having increased 0.4% in June. At 104.4% of its 2007 average, total industrial production in July was 5.0% above its level of a year earlier.

Industrial Production

Industrial Production Change

The output of manufacturing increased 1.0% in July, the output of mines increased 0.3%, and the output of utilities decreased 3.4%.

Capacity utilization for total industry increased in July to 79.2%. That is 0.9% below its long-run (1972–2013) average.

Capacity Utilization

Full table from the release:

IP Table

Treasury Runs Budget Deficit of $94.6 Billion In July

The federal government ran a budget deficit of $94.6 billion during the month of July. This compares with a $97.6 billion deficit in July of 2013.

Monthly Activity

Receipts for the month totaled $210.6 billion, up from $200.0 billion a year earlier. Total outlays were $305.2 billion from $297.6 billion a year earlier.

The rolling 12-month U.S. government budget deficit through July was $534.3 billion, an improvement from $537.3 billion in June. The rolling 12-month budget balance as a percentage of gross domestic product is -3.09%.

Treasury Statement

Productivity Rises At 2.5% Pace In Second Quarter

U.S. labor productivity increased at an annual rate of 2.5% during the second quarter, a sharp shift from the revised 4.5% rate of decrease in the first quarter. Labor productivity is up 1.2% from the same period last year.

Productivity

Output increased at an annual rate of 5.2% during the second quarter, as compared with a 2.4% rate of decrease in the first quarter. Output is up 3.2% from the same period last year.

Output

Labor hours increased at an annual rate of 2.7% during the second quarter, as compared with a 2.1% rate of increase in the first quarter. Labor hours are up 2.0% from the same period last year.

Labor Hours

Hourly compensation increased at an annual rate of 3.1% during the second quarter, as compared with a 6.8% rate of increase in the first quarter. Hourly compensation is up 3.1% from the same period last year.

Hourly Compensation

Real (inflation-adjusted) hourly compensation increased at an annual rate of 0.1% during the second quarter, as compared with a 4.8% rate of increase in the first quarter. Real hourly compensation is up 1.0% from the same period last year.

Real Hourly Compensation

Unit labor costs increased at an annual rate of 0.6% during the second quarter, as compared with a 11.8% rate of increase in the first quarter. Unit labor costs are up 1.9% from the same period last year.

Unit Labor Costs

The table below shows the breakdown across sectors.

Productivity and Costs Table

This was an economic data release. It may or may not have been inline with expectations of people who expect things.

U.S. Trade Deficit Narrows To $41.5 Billion In June

The U.S. international trade deficit during the month of June was $41.5 billion. That is down from a $44.7 billion deficit in May, and is the lowest the deficit has been since January.

Trade Balance

Exports for the month totaled $195.9 billion, up from $195.6 billion. Exports of goods increased to $136.9 billion from $136.7 billion and exports of services increased to $59.0 billion from $58.9 billion.

Exports

Imports for the month totaled $37.4 billion, down from $240.3 billion. Imports of goods decreased to $197.2 billion from $200.1 billion and imports of services increased marginally to $40.2 billion.

Imports

The chart below shows the rolling 12-month trade balance as a percentage of exports (during the same period) to provide better perspective of the relative size of the deficit over time.

Rolling Balance

The U.S. Employment Situation – July 2014

The U.S. Bureau of Labor Statistics reported this morning that 209k nonfarm payrolls were added during the month of July. This follows revised payrolls gains of 298k in June and 229k in May.

Highlights:

  • Industry spread could have been better, but also could have been worse.
  • The U-3 unemployment rate increased to 6.2% from 6.1%, while the broader U-6 unemployment rate rose to 12.2% from 12.1%.
  • The labor force participation rate increased to 62.9% from 62.8%, and the employment-to-population ratio was unchanged at 59.0%.
  • For all private sector production and nonsupervisory employees, weekly hours worked was unchanged at 33.7. The average hourly wage improved to $20.61 from $20.57, sending average weekly earnings to $694.56 from $693.21.
  • The average duration of unemployment decreased to 32.4 weeks from 33.5 weeks. This figure tends to be volatile, and is still abysmally high, but a decrease is always good.
  • 80.82% of all jobs held last month were full-time positions, down from 80.84% last month.
  • Unemployment for all men decreased to 6.2% from 6.3%, while the rate for all women increased to 6.2% from 5.9%.
  • The veteran unemployment rate rose to 6.0% from 5.4%.
  • The unemployment rate for Whites was unchanged at 5.3%, for Blacks it increased to 11.4% from 10.7%, for Asians it decreased to 4.5% from 5.1%, and for Hispanics it was unchanged at 7.8%.
  • The unemployment rate increased for high school dropouts, high school graduates, and those who have completed some college, but decreased for those with a Bachelor’s degree or higher.
  • Unemployment decreased for 16 to 19 year olds, but increased or was unchanged for all other age groups.

Employment Situation

Restaurant Performance Index Falls To 101.3

The National Restaurant Association’s Restaurant Performance Index (RPI) is a monthly composite index that tracks the health of and the outlook for the U.S. restaurant industry.

The RPI stood at 101.3 in June, down from 102.1 in May. The above-100 reading indicates economic expansion in the restaurant sector, but at a slower pace. This is the 16th consecutive month the index has been in expansion.

The Current Situation Index stood at 101.3, down from 102.0, and was its 4th consecutive month in expansion. The Expectations Index stood at 101.7, down from 102.2, and was in expansion for the 20th consecutive month.

Restaurant Performance Index