Adam Horak's Blog – October 2008 Archive (8)

The Federal Open Market Committee decided today to lower its target for the federal funds rate 50 basis points to 1 percent.



The pace of economic activity appears to have slowed markedly, owing importantly to a decline in consumer expenditures. Business equipment spending and industrial production have weakened in recent months, and slowing economic activity in many foreign economies is damping the prospects for U.S. exports. Moreover, the intensification of financial market turmoil… Continue

In the week ending Oct. 18, the advance figure for seasonally adjusted initial claims was 478,000, an increase of 15,000 from the previous week's revised figure of 463,000. It is estimated that the effects of Hurricane Ike in Texas added approximately 12,000 claims to the total. The 4-week moving average was 480,250, a decrease of 4,500 from the previous week's revised average of 484,750.



The advance seasonally adjusted insured unemployment rate was 2.8 percent for the week ending… Continue

Brief Explanation of the CPI



The Consumer Price Index (CPI) is a measure of the average change in

prices over time of goods and services purchased by households. The

Bureau of Labor Statistics publishes CPIs for two population groups: (1)

the CPI for Urban Wage Earners and Clerical Workers (CPI-W), which covers

households of wage earners and clerical workers that comprise

approximately 32 percent of the total population and (2) the CPI for All

Urban… Continue

In the week ending Oct. 11, the advance figure for seasonally adjusted initial claims was 461,000, a decrease of 16,000 from the previous week's revised figure of 477,000. It is estimated that the effects of Hurricane Ike in Texas added approximately 12,000 claims to the total. The 4-week moving average was 483,250, an increase of 750 from the previous week's unrevised average of 482,500.



The advance seasonally adjusted insured unemployment rate was 2.8 percent for the week ending… Continue

In the week ending Oct. 4, the advance figure for seasonally adjusted initial claims was 478,000, a decrease of 20,000 from the previous week's revised figure of 498,000. It is estimated that the effects of Hurricane Gustav in Louisiana and the effects of Hurricane Ike in Texas added approximately 17,000 claims to the total. The 4-week moving average was 482,500, an increase of 8,250 from the previous week's revised average of 474,250.



The advance seasonally adjusted insured… Continue

Federal Reserve, European Central Bank, Bank of England, Bank of Canada, Swiss National Bank and Sweden's Riksbank join forces today in a historical, emergency, coordinated global rate cuts by 50bps ease save the world's economies from the worst crisis since the Great Depression. Fed, ECB, BoE, BoC and Riksbank will cut by 50bps. SNB cut by 25bps. PBoC of China also joins to cut by 27bps. BoJ didn't participate but said it supports the move.



The resulting interest rates… Continue

THE EMPLOYMENT SITUATION: SEPTEMBER 2008



Nonfarm payroll employment declined by 159,000 in September, and

the unemployment rate held at 6.1 percent, the Bureau of Labor Sta-

tistics of the U.S. Department of Labor reported today. Employment

continued to fall in construction, manufacturing, and retail trade,

while mining and health care

continued to add jobs.



Unemployment (Household Survey Data)



The unemployment rate (6.1 percent) was… Continue

Wednesday, October 1, 2008, 8:15 A.M. ET

Nonfarm private employment decreased 8,000 from August to September 2008 on a seasonally

adjusted basis, according to the ADP National Employment Report®. The estimated change in

employment from July to August was revised down from a decrease of 33,000 to a decrease of

37,000.

September’s ADP National Employment Report continues to offer evidence of a weak labor

market. Note that this month, the ADP Report does not reflect… Continue