Constuction Spending: July 2011

Today, the U.S. Census Bureau released their July read of construction spending showing near-cycle low levels of spending for residential construction while indicating a slight improvement for single family residential and a decline for total non-residential spending.

On a month-to-month basis, total residential spending declined 1.4% but increased 4.44% above the level seen in July 2010 while remaining a whopping 63.31% below the peak level seen in 2006.

Single family construction spending increased 0.06% since June falling 8.67% since July 2010 and whopping 77.65% below it's peak in 2006.

Non-residential construction spending declined 0.35% since June but increased 5.56% since July 2010 remaining a whopping 37.52% below the peak level reached in October 2008.

The following charts (click for larger dynamic versions) show private residential construction spending, private residential single family construction spending and private non-residential construction spending broken out and plotted since 1993 along with the year-over-year, month-to-month and peak percent change to each since 1994 and 2000 – 2005.

ISM Manufacturing Report on Business: August 2011

Today, the Institute for Supply Management released their latest Report on Business for the manufacturing sector indicating that economic activity continued to weaken in August with assessments of many measures slowing.

At 50.6 the purchasing manager’s composite index (PMI) declined 0.59% since July sliding 8.33% below the level seen a year earlier.

Some respondents indicated sluggish domestic sales, slowing trends and headwinds coming from customers unwillingness to commit to purchases:

"Business is soft, confidence is down, and we are cutting inventory and expenses." (Machinery)

"Exports continue to be strong — domestic weak." (Computer & Electronic Products)

"Current headwinds in the national and international economic environment have increased uncertainty, and are affecting our customers' willingness to commit to high-dollar equipment purchases." (Transportation Equipment)

"We continue to post solid numbers, but the situation seems tenuous." (Plastics & Rubber Products)

"Automotive business (represents 52 percent of our sales portfolio) continues to be strong. Core business has pulled back slightly." (Apparel, Leather & Allied Products)

"Sales continue to be sluggish." (Furniture & Related Products)

Extended Unemployment: Initial, Continued and Extended Unemployment Claims September 01 2011

Today’s jobless claims report showed decline to both initial and continued unemployment claims as a recent rising trend was called firmly into question for initial claims.

Seasonally adjusted “initial” unemployment declined 12,000 to 409,000 claims from last week’s revised 421,000 claims while seasonally adjusted “continued” claims declined by 18,000 resulting in an “insured” unemployment rate of 3.0%.

Since the middle of 2008 though, two federal government sponsored “extended” unemployment benefit programs (the “extended benefits” and “EUC 2008” from recent legislation) have been picking up claimants that have fallen off of the traditional unemployment benefits rolls.

Currently there are some 3.67 million people receiving federal “extended” unemployment benefits.

Taken together with the latest 3.55 million people that are currently counted as receiving traditional continued unemployment benefits, there are 7.23 million people on state and federal unemployment rolls.