Tom Moeller

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<img align="left" border="0" height="265" src="https://haver-commentaries.s3.eu-west-1.amazonaws.com/comments/020918a.jpg" width="353">
Consumer prices (CPI-U) rose 0.3% last month. Consensus expectations were for a 0.2% gain. Excluding food and energy, prices also rose a more than expected 0.3%.
Pricing strength centered on higher tobacco prices, up 2.4%. Nevertheless, the core CPI less tobacco rose 0.3%. Apparel prices rose 1.1% following four consecutive months of decline. Shelter prices rose 0.4%, the strongest gain since April. Public transportation prices rose 0.8%, the first rise in three months. Education prices rose a strong 0.7% for the second consecutive month.
Home furnishings prices fell 0.3%, the seventh month of negative or zero change this year. New vehicle prices also were down 0.1% and have fallen or been unchanged in each month of this year. Medical care prices rose only 0.2% following a 0.7% July gain.
The August chained CPI as well as the core chained CPI rose the same as the official figures.

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<th scope="col" class="firstcol"><a href="http://www.haverselect.com/dlx/USECON/@E8/@E801/@E80101/@E80101.HTM">Consumer Price Index</a></th>
<th scope="col">Aug</th>
<th scope="col">July</th>
<th scope="col">Y/Y</th>
<th scope="col">2001</th>
<th scope="col">2000</th>
<th scope="col">1999</th>
</tr>
</thead>
<tbody>
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<td class="firstcol">Total&nbsp;</td>
<td>0.3%</td>
<td>0.1%</td>
<td>1.7%</td>
<td>2.8%</td>
<td>3.4%</td>
<td>2.2%</td>
</tr>
<tr>
<td class="firstcol">&nbsp;Total less Food &amp; Energy</td>
<td>0.3%</td>
<td>0.2%</td>
<td>2.4%</td>
<td>2.7%</td>
<td>2.4%</td>
<td>2.1%</td>
</tr>
<tr class="odd">
<td class="firstcol">&nbsp; Goods less Food &amp; Energy</td>
<td>0.2%</td>
<td>-0.1%</td>
<td>-0.8%</td>
<td>0.3%</td>
<td>0.5%</td>
<td>0.7%</td>
</tr>
<tr>
<td class="firstcol">&nbsp; Services less Energy</td>
<td>0.4%</td>
<td>0.3%</td>
<td>3.7%</td>
<td>3.7%</td>
<td>3.3%</td>
<td>2.7%</td>
</tr>
<tr class="odd">
<td class="firstcol">&nbsp;Energy</td>
<td>0.6%</td>
<td>0.4%</td>
<td>-3.0%</td>
<td>3.7%</td>
<td>16.9%</td>
<td>3.6%</td>
</tr>
<tr>
<td class="firstcol">&nbsp;Food &amp; Beverages</td>
<td>-0.1%</td>
<td>0.2%</td>
<td>1.3%</td>
<td>3.1%</td>
<td>2.3%</td>
<td>2.1%</td>
</tr>
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<td class="firstcol"></td>
<td>&nbsp;</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
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<tr>
<td class="firstcol"><a href="http://www.haverselect.com/dlx/USECON/@E8/@E801/@E80113/@E80113.HTM">Chained CPI: Total (NSA)l</a></td>
<td>0.3%</td>
<td>0.0%</td>
<td>1.3%</td>
<td>2.1%</td>
<td>2.0%</td>
<td>NA</td>
</tr>
<tr class="odd">
<td class="firstcol">&nbsp;Total less Food &amp; Energy</td>
<td>0.3%</td>
<td>0.0%</td>
<td>1.7%</td>
<td>1.9%</td>
<td>&nbsp;1.4%</td>
<td>NA</td>
</tr>
</tbody>
</table>
U.S. Trade Deficit Improved Again in July 
by <a href="/comment/Moeller.html">Tom Moeller</a> September 18, 2002


<img align="left" border="0" height="265" src="https://haver-commentaries.s3.eu-west-1.amazonaws.com/comments/020918b.jpg" width="353">
The U.S. foreign trade deficit improved notably in July. The improvement follows improvement in June. June&#39;s deficit was lessened from $37.8B reported last month. Consensus expectations were for a July deficit of $37.0B
Exports rose strongly for the fourth month in five. Capital goods exports rose for the third consecutive month (13.3% AR, YTD) and nonauto consumer goods (3.0% AR, YTD) were quite strong for the third month in four.
Imports fell due to declines in capital goods (11.4% AR, YTD) and nonauto consumer goods (27.1% AR, YTD). Imports of industrial supplies and materials rose modestly but are up 44.9% (AR) this year on higher oil prices.
The refiner&#39;s acquisition cost of imported crude oil rose to $24.41 in July versus $15.95 in December. Crude oil prices rose further August and September.

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<th scope="col" class="firstcol"><a href="http://www.haverselect.com/dlx/USECON/@EE/@EE03/@EE03.HTM">Foreign Trade</a></th>
<th scope="col">July</th>
<th scope="col">June</th>
<th scope="col">Y/Y</th>
<th scope="col">2001</th>
<th scope="col">2000</th>
<th scope="col">1999</th>
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<td class="firstcol">Trade Deficit</td>
<td>$34.6B</td>
<td>$36.8B</td>
<td>$30.8B(7/01)</td>
<td>$358.3B</td>
<td>$378.7B</td>
<td>$262.2B</td>
</tr>
<tr>
<td class="firstcol">&nbsp; Exports - Goods &amp; Services</td>
<td>1.3%</td>
<td>1.4%</td>
<td>1.3%</td>
<td>-6.2%</td>
<td>11.2%</td>
<td>2.6%</td>
</tr>
<tr class="odd">
<td class="firstcol">&nbsp; Imports - Goods &amp; Services</td>
<td>-1.0%</td>
<td>0.2%</td>
<td>4.2%</td>
<td>-6.0%</td>
<td>18.3%</td>
<td>10.9%</td>
</tr>
</tbody>
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Consumer prices (CPI-U) rose 0.3% last month. Consensus expectations were for a 0.2% gain. Excluding food and energy, prices also rose a more than expected 0.3%. Pricing strength centered on higher tobacco prices, up 2.4%. [...]

CPI Rose More Than Expected

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<img align="left" border="0" height="265" src="https://haver-commentaries.s3.eu-west-1.amazonaws.com/comments/020917a.jpg" width="353">
Industrial production fell 0.3% (4.2% AR, YTD) in August versus Consensus expectations for a 0.2% rise. July figures were revised up from a 0.2% gain reported last month.
Output in the manufacturing sector fell 0.1% (3.9% AR, YTD). The July gain was revised to 0.3% from 0.1% reported previously. It was the first monthly decline this year.
A 1.5% decline motor vehicles and parts output (16.2% AR, YTD), furniture &amp; fixtures and most nondurable goods was responsible for the decline in factory output. 
Output of business equipment fell (-1.1% AR, YTD) for the second consecutive month led by lower output of transit and information processing equipment. 
Capacity utilization fell. Capacity again rose 0.1%(1.0% AR, YTD) as it has since early last year.

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<th scope="col" class="firstcol"><a href="http://www.haverselect.com/dlx/USECON/@EA/@EA.HTM">Production &amp; Capacity</a></th>
<th scope="col">Aug</th>
<th scope="col">July</th>
<th scope="col">Y/Y</th>
<th scope="col">2001</th>
<th scope="col">2000</th>
<th scope="col">1999</th>
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</thead>
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<td class="firstcol">Industrial Production</td>
<td>-0.3%</td>
<td>0.4%</td>
<td>0.4%</td>
<td>-3.7%</td>
<td>4.5%</td>
<td>3.7%</td>
</tr>
<tr>
<td class="firstcol">Capacity Utilization</td>
<td>76.0%</td>
<td>76.2%</td>
<td>76.4%(8/01)</td>
<td>76.8%</td>
<td>81.8%</td>
<td>81.4%</td>
</tr>
</tbody>
</table>
Weekly Chain Store Sales Unchanged 
by <a href="/comment/Moeller.html">Tom Moeller</a> September 17, 2002


<img align="left" border="0" height="265" src="https://haver-commentaries.s3.eu-west-1.amazonaws.com/comments/020917b.jpg" width="353">
Chain store sales were unchanged last week according to the BTM-UBSW survey. Sales during the prior week, which contained Labor Day, had posted only a modest gain.
Sales so far in September were 0.1% below the August average. August sales fell 0.9% versus July.
During the last five years there has been a 56% correlation between the year-to-year percent change in chain store sales as reported by BTM-UBSW and the change in same store sales as reported by Redbook Instinet Research.

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<th scope="col" class="firstcol"><a href="http://www.haverselect.com/dlx/surveyw/@S2/@S2.HTM">BTM-UBSW (SA, 1977=100)</a></th>
<th scope="col">9/14/02</th>
<th scope="col">9/7/02</th>
<th scope="col">Y/Y</th>
<th scope="col">2001</th>
<th scope="col">2000</th>
<th scope="col">1999</th>
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</thead>
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<td class="firstcol">Total Weekly Retail Chain Store Sales</td>
<td>411.2</td>
<td>411.2</td>
<td>3.7%</td>
<td>2.1%</td>
<td>3.4%</td>
<td>6.7%</td>
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</tbody>
</table>
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Industrial production fell 0.3% (4.2% AR, YTD) in August versus Consensus expectations for a 0.2% rise. July figures were revised up from a 0.2% gain reported last month. Output in the manufacturing sector fell 0.1% (3.9% AR, YTD). [...]

Industrial Production Fell Unexpectedly

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<img align="left" border="0" height="265" src="https://haver-commentaries.s3.eu-west-1.amazonaws.com/comments/020916a.jpg" width="353">
Total business inventories rose strongly in July versus consensus expectations for only a slight gain. It was the third consecutive month of accumulation following over a year during which inventories were shed.
Retail inventories, reported for the first time, rose (4.2% YTD) for the sixth month this year. Nonauto retail inventories also rose (1.2% YTD). For the second month in three the gain was strong. 
Inventory gains at auto dealers and at furniture &amp; home furnishings stores has been notable.
Overall business sales surged 1.2%% (3.6% YTD) on the strength of higher retail and factory sales.
The inventory-to-sales ratio fell to 1.35, near the record low.

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<th scope="col" class="firstcol"><a href="http://www.haverselect.com/dlx/USECON/@ED/@ED06/@ED0601/@ED0601.HTM">Business Inventories</a></th>
<th scope="col">July</th>
<th scope="col">June</th>
<th scope="col">Y/Y</th>
<th scope="col">2001</th>
<th scope="col">2000</th>
<th scope="col">1999</th>
</tr>
</thead>
<tbody>
<tr class="odd">
<td class="firstcol">Total</td>
<td>0.4%</td>
<td>0.3%</td>
<td>-3.7%</td>
<td>-6.3%</td>
<td>5.6%</td>
<td>5.4%</td>
</tr>
<tr>
<td class="firstcol">&nbsp; Retail</td>
<td>0.9%</td>
<td>0.5%</td>
<td>0.7%</td>
<td>-5.0%</td>
<td>6.1%</td>
<td>7.7%</td>
</tr>
<tr class="odd">
<td class="firstcol">&nbsp;&nbsp;&nbsp; Retail excl. Autos</td>
<td>0.5%</td>
<td>0.3%</td>
<td>0.5%</td>
<td>-2.0%</td>
<td>4.1%</td>
<td>5.7%</td>
</tr>
<tr>
<td class="firstcol">&nbsp; Wholesale</td>
<td>0.6%</td>
<td>0.4%</td>
<td>-4.7%</td>
<td>-5.5%</td>
<td>6.6%</td>
<td>6.0%</td>
</tr>
<tr class="odd">
<td class="firstcol">&nbsp; Manufacturing</td>
<td>-0.1%</td>
<td>-0.1%</td>
<td>-7.1%</td>
<td>-8.0%</td>
<td>4.5%</td>
<td>3.1%</td>
</tr>
</tbody>
</table>
</body>
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Total business inventories rose strongly in July versus consensus expectations for only a slight gain. It was the third consecutive month of accumulation following over a year during which inventories were shed. Retail inventories, [...]

Business Inventory Accumulation Strong

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<img align="left" border="0" height="265" src="https://haver-commentaries.s3.eu-west-1.amazonaws.com/comments/020913a.jpg" width="353">
Retail sales rose more than expected in August. It was the fourth firm rise in the last five months. Year to date sales are up at a 5.6% annual rate. July sales were little revised.
Sales of motor vehicle and parts dealers again were strong, rising 1.9% (7.3% AR, YTD) as zero percent financing plans were extended by automakers.
Sales excluding motor vehicles and parts dealers rose 0.4% (5.1% AR, YTD), twice the consensus expectation.
Sales at furniture and home furnishing stores rose 0.7%, though sketchy results of late left August sales down versus December. Clothing and accessories store sales fell for the fifth month this year. The YTD comparison also is negative. General merchandise store sales rose 0.6% (4.8% AR, YTD).
Sales at gasoline stations fell 0.8% (17.6% AR, YTD). Nonauto retail sales less gasoline rose 0.5% (4.0% AR, YTD)

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<th scope="col" class="firstcol">&nbsp;</th>
<th scope="col">Aug</th>
<th scope="col">July</th>
<th scope="col">Y/Y</th>
<th scope="col">2001</th>
<th scope="col">2000</th>
<th scope="col">1999</th>
</tr>
</thead>
<tbody>
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<td class="firstcol"><a href="http://www.haverselect.com/dlx/usecon/@ED/@ED04/@ED0401/@ED0401.HTM">Retail Sales &amp; Food Services</a></td>
<td>0.8%</td>
<td>1.1%</td>
<td>5.2%</td>
<td>3.8%</td>
<td>6.7%</td>
<td>8.4%</td>
</tr>
<tr>
<td class="firstcol">&nbsp; Excluding Autos</td>
<td>0.4%</td>
<td>0.2%</td>
<td>3.7%</td>
<td>3.4%</td>
<td>7.3%</td>
<td>7.4%</td>
</tr>
</tbody>
</table>
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</table>
Producer Prices Again Weak 
by <a href="/comment/Moeller.html">Tom Moeller</a> September 13, 2002


<img align="left" border="0" height="265" src="https://haver-commentaries.s3.eu-west-1.amazonaws.com/comments/020913b.jpg" width="353">
Finished producer prices were weaker than expected last month. Prices were unchanged rather than up 0.2% as the Consensus expected. Excluding food and energy prices also were weaker than expectations for a 0.1% rise. Core producer prices fell for the second consecutive month (-0.5% AR, YTD).
Energy prices rose 1.0% (10.8% AR, YTD) following three months when prices fell or were little changed.
Food prices fell for the fourth month in five.
Core finished consumer goods prices fell for the second month in a row (-0.2% AR, YTD). Core nondurable goods prices rose modestly (1.0% AR, YTD). Consumer durables prices fell for the fifth month this year (-1.6% AR, YTD). Capital goods prices fell for the fifth month this year (-1.0% AR, YTD). 
Intermediate goods prices posted the strongest rise since April (2.9% AR, YTD). Core intermediate prices were firm (2.0% YTD, AR). 
Crude goods prices also were firm (20.1% AR, YTD) reflecting higher prices for energy and other commodities. Core crude prices were up 17.5% (AR) year to date.

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<th scope="col" class="firstcol"><a href="http://www.haverselect.com/dlx/USECON/@E8/@E802/@E80201/@E80201.HTM">Producer Price Index</a></th>
<th scope="col">Aug</th>
<th scope="col">July</th>
<th scope="col">Y/Y</th>
<th scope="col">2001</th>
<th scope="col">2000</th>
<th scope="col">1999</th>
</tr>
</thead>
<tbody>
<tr class="odd">
<td class="firstcol">Finished Goods</td>
<td>0.0%</td>
<td>-0.2%</td>
<td>-1.5%</td>
<td>2.0%</td>
<td>3.7%</td>
<td>1.8%</td>
</tr>
<tr>
<td class="firstcol">&nbsp; Core</td>
<td>-0.1%</td>
<td>-0.3%</td>
<td>-0.3%</td>
<td>1.4%</td>
<td>1.3%</td>
<td>1.7%</td>
</tr>
<tr class="odd">
<td class="firstcol">Intermediate Goods</td>
<td>0.4%</td>
<td>0.2%</td>
<td>-0.7%</td>
<td>0.4%</td>
<td>4.9%</td>
<td>0.1%</td>
</tr>
<tr>
<td class="firstcol">&nbsp; Core</td>
<td>0.4%</td>
<td>0.2%</td>
<td>0.4%</td>
<td>-0.1%</td>
<td>2.6%</td>
<td>-0.3%</td>
</tr>
<tr class="odd">
<td class="firstcol">Crude Goods</td>
<td>1.6%</td>
<td>0.6%</td>
<td>-4.1%</td>
<td>0.3%</td>
<td>22.8%</td>
<td>1.5%</td>
</tr>
<tr>
<td class="firstcol">&nbsp; Core</td>
<td>0.4%</td>
<td>1.7%</td>
<td>9.0%</td>
<td>-9.9%</td>
<td>7.3%</td>
<td>-4.7%</td>
</tr>
</tbody>
</table>
Consumer Sentiment Down Further 
by <a href="/comment/Moeller.html">Tom Moeller</a> September 13, 2002


<img align="left" border="0" height="265" src="https://haver-commentaries.s3.eu-west-1.amazonaws.com/comments/020913c.jpg" width="353">
The mid-September reading of Consumer Sentiment from the University of Michigan was weaker than expectations for a slight rise. Sentiment fell 1.6% (m/m) signaling the sixth monthly decline this year.
Both the indexes of consumer expectations and current conditions fell. The current index fell sharply. 
The University of Michigan survey is not seasonally adjusted.
For a discussion of consumer confidence and sentiment in the aftermath of September 11th click <a href="http://www.kc.frb.org/Publicat/econrev/er02q2.htm#consumer">here</a>.

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<th scope="col" class="firstcol"><a href="http://www.haverselect.com/dlx/USECON/@EF/@EF14/@EF1402/@EF1402.HTM">University of Michigan</a></th>
<th scope="col">Mid-Sept.</th>
<th scope="col">Aug</th>
<th scope="col">Y/Y</th>
<th scope="col">2001</th>
<th scope="col">2000</th>
<th scope="col">1999</th>
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</thead>
<tbody>
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<td class="firstcol">Consumer Sentiment</td>
<td>86.2</td>
<td>87.6</td>
<td>5.4%</td>
<td>89.2</td>
<td>107.6</td>
<td>105.8</td>
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</tbody>
</table>
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Retail sales rose more than expected in August. It was the fourth firm rise in the last five months. Year to date sales are up at a 5.6% annual rate. July sales were little revised. Sales of motor vehicle and parts dealers again were [...]

August Retail Sales Firm

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<img align="left" border="0" height="265" src="https://haver-commentaries.s3.eu-west-1.amazonaws.com/comments/020912b.jpg" width="353">
Prices for imported commodities rose moderately last month. The rise was right on Consensus expectations. July figures were little revised.
Petroleum import prices rose for the seventh month this year. Petroleum prices have risen 51.8% since December. In September, the price of Arab Light crude oil is up to $25.52/bbl versus $23.22 in August.
Nonpetroleum import prices rose 0.1% (0.2% YTD) after being unchanged in July.
Prices for imported capital goods rose 0.2% (-1.1% YTD) after falling 0.2% in July. Nonauto consumer goods prices were unchanged (-0.5% YTD) and auto prices were unchanged for the second consecutive month (0.1% YTD).
Export prices rose just 0.1% (0.8% YTD). Food and industrial supplies prices (5.6% YTD) were strong for the third consecutive month but other export prices were weak or fell.

<table border="0" cellspacing="0" width="100%">
<colgroup><col><col><col><col><col><col></colgroup>
<thead>
<tr>
<th scope="col" class="firstcol"><a href="http://www.haverselect.com/dlx/USECON/@E8/@E807/@E807.HTM">Import/Export Prices (NSA)</a></th>
<th scope="col">Aug</th>
<th scope="col">July</th>
<th scope="col">Y/Y</th>
<th scope="col">2001</th>
<th scope="col">2000</th>
<th scope="col">1999</th>
</tr>
</thead>
<tbody>
<tr class="odd">
<td class="firstcol">Import - All Commodities</td>
<td>0.3%</td>
<td>0.4%</td>
<td>-1.3%</td>
<td>-3.5%</td>
<td>6.5%</td>
<td>0.9%</td>
</tr>
<tr>
<td class="firstcol">&nbsp; Petroleum</td>
<td>2.1%</td>
<td>4.3%</td>
<td>5.6%</td>
<td>-17.2%</td>
<td>66.5%</td>
<td>34.2%</td>
</tr>
<tr class="odd">
<td class="firstcol">&nbsp; Nonpetroleum</td>
<td>0.1%</td>
<td>0.0%</td>
<td>-1.1%</td>
<td>-1.5%</td>
<td>1.0%</td>
<td>-1.4%</td>
</tr>
<tr>
<td class="firstcol">Export - All Commodities</td>
<td>0.1%</td>
<td>0.3%</td>
<td>-0.4%</td>
<td>-0.8%</td>
<td>1.6%</td>
<td>-1.3%</td>
</tr>
</tbody>
</table>
2Q Current Account Deficit Another Record 
by <a href="/comment/Moeller.html">Tom Moeller</a> September 12, 2002


<img align="left" border="0" height="265" src="https://haver-commentaries.s3.eu-west-1.amazonaws.com/comments/020912c.jpg" width="353">
The US current account deficit deepened more than expected last quarter to another record level. 
A record deficit in goods, services and income trade was driven by another sharp deterioration in goods and services trade. The newly formed deficit in the income balance deteriorated further.
Exports of goods and services rose for the second consecutive quarter, up 4.5%, and income receipts rose 4.3%, the first quarterly gain since 2000.

<table border="0" cellspacing="0" width="100%">
<colgroup><col><col><col><col><col><col></colgroup>
<thead>
<tr>
<th scope="col" class="firstcol"><a href="http://www.haverselect.com/dlx/USECON/@EE/@EE01/@EE01.HTM">US Int&#39;l Balance of Payments</a></th>
<th scope="col">2Q &#39;02</th>
<th scope="col">1Q &#39;02</th>
<th scope="col">Y/Y</th>
<th scope="col">2001</th>
<th scope="col">2000</th>
<th scope="col">1999</th>
</tr>
</thead>
<tbody>
<tr class="odd">
<td class="firstcol">Current Account Deficit</td>
<td>$130.0B</td>
<td>$112.5B</td>
<td>$99.2B</td>
<td>$393.4B</td>
<td>$410.3B</td>
<td>$292.9B</td>
</tr>
<tr>
<td class="firstcol">&nbsp; % of GDP</td>
<td>5.0%</td>
<td>4.4%</td>
<td>4.0%</td>
<td>3.8%</td>
<td>4.5%</td>
<td>3.5%</td>
</tr>
<tr class="odd">
<td class="firstcol">&nbsp; Deficit on Gds, Serv &amp; Income</td>
<td>$116.9B</td>
<td>$96.4B</td>
<td>$87.3B</td>
<td>$343.9B</td>
<td>$356.9B</td>
<td>$244.1B</td>
</tr>
<tr>
<td class="firstcol">&nbsp;&nbsp;&nbsp; Exports</td>
<td>4.5%</td>
<td>-0.1%</td>
<td>-8.2%</td>
<td>-9.6%</td>
<td>13.6%</td>
<td>4.7%</td>
</tr>
<tr class="odd">
<td class="firstcol">&nbsp;&nbsp;&nbsp; Imports</td>
<td>8.6%</td>
<td>3.9%</td>
<td>0.6%</td>
<td>-8.4%</td>
<td>18.9%</td>
<td>10.4%</td>
</tr>
<tr>
<td class="firstcol">&nbsp; Unilateral Transfers Deficit</td>
<td>$13.1B</td>
<td>$16.0B</td>
<td>$11.9B</td>
<td>$49.5B</td>
<td>$53.4B</td>
<td>$48.8B</td>
</tr>
</tbody>
</table>
Initial Jobless Insurance Claims Highest Since April 
by <a href="/comment/Moeller.html">Tom Moeller</a> September 12, 2002


<img align="left" border="0" height="265" src="https://haver-commentaries.s3.eu-west-1.amazonaws.com/comments/020912a.jpg" width="353">
Initial claims for unemployment insurance were again higher than expected in the latest week.Claims rose 19,000 versus the prior week which was revised up slightly.
Claims have been above the 400,000 threshold for three consecutive weeks for the first time since May.
The four-week moving average rose to 409,500.
Continuing claims for unemployment insurance rose 1.1% but the prior week&#39;s level which was revised down by a like amount.
The weekly insured rate of unemployment was stable at 2.8% for the third consecutive week.

<table border="0" cellspacing="0" width="100%">
<colgroup><col><col><col><col><col><col></colgroup>
<thead>
<tr>
<th scope="col" class="firstcol"><a href="http://www.haverselect.com/dlx/WEEKLY/@W5/@W507/@W507.HTM">Unemployment Insurance (000s)</a></th>
<th scope="col">9/7/02</th>
<th scope="col">8/31/02</th>
<th scope="col">Y/Y</th>
<th scope="col">2001</th>
<th scope="col">2000</th>
<th scope="col">1999</th>
</tr>
</thead>
<tbody>
<tr>
<td class="firstcol">Initial Claims</td>
<td>426.0</td>
<td>407.0</td>
<td>1.4%</td>
<td>405.8</td>
<td>299.8</td>
<td>297.7</td>
</tr>
<tr>
<td class="firstcol">Continuing Claims</td>
<td>--</td>
<td>3,569</td>
<td>11.2%</td>
<td>3,021</td>
<td>2,114</td>
<td>2,186</td>
</tr>
</tbody>
</table>
</body>
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Prices for imported commodities rose moderately last month. The rise was right on Consensus expectations. July figures were little revised. Petroleum import prices rose for the seventh month this year. Petroleum prices have risen [...]

Import Prices Rose As Expected

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<img align="left" border="0" height="265" src="https://haver-commentaries.s3.eu-west-1.amazonaws.com/comments/020911a.jpg" width="353">
The Future Inflation Gauge (FIG) published by the Economic Cycle Research Institute (ECRI) rose for the fifth consecutive month in August.
The indicator&#39;s six-month growth rate of 18.8% was the strongest growth rate in the record of the index which dates back to 1994.
The monthly FIG has a mean lead of 11 months and a median lead of 9 months at inflation cycle turns .
The eight components of the FIG are commodity prices, employment measures, capacity measures, import prices, the yield spread, real estate and debt.
For more on ECRI visit <a href="http://www.businesscycle.com/">http://www.businesscycle.com</a>.

<table border="0" cellspacing="0" width="100%">

</table>
<table border="0" cellspacing="0" width="100%">
<colgroup><col><col><col><col><col><col></colgroup>
<thead>
<tr>
<th scope="col" class="firstcol"><a href="http://www.haverselect.com/dlx/USECON/@EF/@EF12/@EF12.HTM">ECRI</a></th>
<th scope="col">Aug</th>
<th scope="col">July</th>
<th scope="col">Y/Y</th>
<th scope="col">2001</th>
<th scope="col">2000</th>
<th scope="col">1999</th>
</tr>
</thead>
<tbody>
<tr>
<td class="firstcol">Future Inflation Gauge</td>
<td>109.0</td>
<td>107.0</td>
<td>8.8%</td>
<td>-14.2%</td>
<td>6.5%</td>
<td>3.5%</td>
</tr>
</tbody>
</table>
</body>
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The Future Inflation Gauge (FIG) published by the Economic Cycle Research Institute (ECRI) rose for the fifth consecutive month in August. The indicator's six-month growth rate of 18.8% was the strongest growth rate in the record of [...]

ECRI Future Inflation Gauge Rose

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<img align="left" border="0" height="265" src="https://haver-commentaries.s3.eu-west-1.amazonaws.com/comments/020910a.jpg" width="353">
Chain store sales rose 0.1% during the first week of September according to the BTM-UBSW survey. Sales during Labor Day week posted the second rise versus the prior period following three consecutive down weeks.
Sales began the month of September 0.1% below the August average. August sales fell 0.9% versus July.
During the last five years there has been a 56% correlation between the year-to-year percent change in chain store sales as reported by BTM-UBSW and the change in same store sales as reported by Redbook Instinet Research.

<table border="0" cellspacing="0" width="100%">
<colgroup><col><col><col><col><col><col></colgroup>
<thead>
<tr>
<th scope="col" class="firstcol"><a href="http://www.haverselect.com/dlx/surveyw/@S2/@S2.HTM">BTM-UBSW (SA, 1977=100)</a></th>
<th scope="col">9/07/02</th>
<th scope="col">8/31/02</th>
<th scope="col">Y/Y</th>
<th scope="col">2001</th>
<th scope="col">2000</th>
<th scope="col">1999</th>
</tr>
</thead>
<tbody>
<tr>
<td class="firstcol">Total Weekly Retail Chain Store Sales</td>
<td>411.2</td>
<td>410.7</td>
<td>2.3%</td>
<td>2.1%</td>
<td>3.4%</td>
<td>6.7%</td>
</tr>
</tbody>
</table>
The Dollar & Commodity Prices Meander 
by <a href="/comment/Moeller.html">Tom Moeller</a> September 10, 2002


<img align="left" border="0" height="265" src="https://haver-commentaries.s3.eu-west-1.amazonaws.com/comments/020910b.jpg" width="353">
The trade weighted value of the US dollar recently has recouped some of the losses suffered early last week.
Nevertheless, the dollar&#39;s trade weighted value has been volatile in a range of plus or minus 1.5% since the lows set early in July. Since then, sentiment regarding near term Fed ease has waxed and waned.
Commodity prices also have meandered recently. Oil prices have fallen 13% from the daily highs set in June but very recently have moved sideways. Metals prices also are down versus June highs but lately have stabilized.

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Chain store sales rose 0.1% during the first week of September according to the BTM-UBSW survey. Sales during Labor Day week posted the second rise versus the prior period following three consecutive down weeks. Sales began the month [...]

Chain Store Sales Up Modestly

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<img align="left" border="0" height="265" src="https://haver-commentaries.s3.eu-west-1.amazonaws.com/comments/020909b.jpg" width="353">
Consumer credit outstanding rose $10.8B (0.6%) in July, a bit more than expected. June figures were revised up slightly. So far this year, consumer credit outstanding has risen at a 5.9% annual rate. 
Revolving credit grew more strongly (0.9%) than in any month since November. That surge raised year to date revolving credit growth to 5.6% (AR).
Not seasonally adjusted revolving credit issuance was quite strong from finance companies. The 12.8% month to month surge was the strongest on record.
Nonrevolving credit was moderate at 0.4%, 6.1% (AR) YTD.

<table border="0" cellspacing="0" width="100%">
<colgroup><col><col><col><col><col><col></colgroup>
<thead>
<tr>
<th scope="col" class="firstcol"><a href="http://www.haverselect.com/dlx/USECON/@E1/@E103/@E10308/@E10308.HTM">Consumer Credit Outstanding</a></th>
<th scope="col">July m/m</th>
<th scope="col">June m/m</th>
<th scope="col">Y/Y</th>
<th scope="col">2001</th>
<th scope="col">2000</th>
<th scope="col">1999</th>
</tr>
</thead>
<tbody>
<tr class="odd">
<td class="firstcol">Total</td>
<td>$10.8B</td>
<td>$8.9B</td>
<td>6.4%</td>
<td>6.8%</td>
<td>10.2%</td>
<td>7.5%</td>
</tr>
<tr>
<td class="firstcol">&nbsp; Revolving</td>
<td>$6.5B</td>
<td>$3.5B</td>
<td>3.3%</td>
<td>4.9%</td>
<td>11.5%</td>
<td>6.3%</td>
</tr>
<tr class="odd">
<td class="firstcol">&nbsp; Nonrevolving</td>
<td>$4.4B</td>
<td>$5.3B</td>
<td>8.7%</td>
<td>8.3%</td>
<td>9.2%</td>
<td>8.4%</td>
</tr>
</tbody>
</table>
Chicago Fed National Activity Index Down in July 
by <a href="/comment/Moeller.html">Tom Moeller</a> September 9, 2002


<img align="left" border="0" height="265" src="https://haver-commentaries.s3.eu-west-1.amazonaws.com/comments/020909a.jpg" width="353">
The Chicago Fed National Activity Index (CFNAI) fell in July. The decline left the three-month moving average near zero.
The index level measures deviations from zero. A zero value indicates that the economy is expanding at its historical trend rate of growth.
The CFNAI is a weighted average of 85 indicators of economic activity. The indicators reflect activity in the following categories: production &amp; income, the labor market, personal consumption &amp; housing, mfg. &amp; trade sales, and inventories &amp; orders.
During the last ten years there has been a 70% correlation between the level of the National Activity Index and quarterly growth in real GDP.
For a complete discussion of the Chicago Fed&#39;s National Activity Index visit: <a href="http://www.chicagofed.org/economicresearchanddata/national/pdffiles/CFNAI_july2002.pdf">http://www.chicagofed.org/economicresearchanddata/national/pdffiles/CFNAI_july2002.pdf</a>

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<table border="0" cellspacing="0" width="100%">
<colgroup><col><col><col><col><col><col></colgroup>
<thead>
<tr>
<th scope="col" class="firstcol"><a href="http://www.haverselect.com/dlx/SURVEYS/@S5/@S503/@S503.HTM">Chicago Fed</a></th>
<th scope="col">July</th>
<th scope="col">June</th>
<th scope="col">Y/Y</th>
<th scope="col">2001</th>
<th scope="col">2000</th>
<th scope="col">1999</th>
</tr>
</thead>
<tbody>
<tr>
<td class="firstcol">CFNAI</td>
<td>-0.25</td>
<td>0.20</td>
<td>-0.35</td>
<td>-1.10</td>
<td>-0.18</td>
<td>0.27</td>
</tr>
</tbody>
</table>
</body>
</html>

Consumer credit outstanding rose $10.8B (0.6%) in July, a bit more than expected. June figures were revised up slightly. So far this year, consumer credit outstanding has risen at a 5.9% annual rate. Revolving credit grew more [...]

Consumer Credit Growth Strong

USD/EUR exchange rate uncoupling from interest rate differential

Widespread downgrading of 2025 GDP outlook

Trade and fiscal policy uncertainty has exploded with the new administration

Much lower US electricity costs gives it a competitive advantage

Wage growth slowing in the US and Euro area; elevated and sticky in the UK

Stagflation-lite: Blue Chip forecasts below-trend growth and elevated inflation

US policy gyrations boosting policy uncertainty worldwide

Expected tariff hikes have boosted inflation expectations

US and Japan ended 2024 on solid ground in contrast to Europe

US economy expected to outperform other major economies in 2025

Only modest evidence of AI-related surge in US productivity growth

Previous Trump tariffs fading. A boost from new tariffs ahead?

Heavy US manufacturing states underperforming while Sun Belt states outperforming

Rising long-term yields a global phenomenon

US financial market concerns shifting from growth to inflation

Economic activity is picking up in the US but remains lackluster abroad

Policy uncertainty has surged since the US national elections.

Recent turnaround in US economic surprises leading to increases in rate-cut expectations

The outlook has brightened in the US, while it has dimmed for other major economies

Headline US PCE inflation elevated by sticky services prices

US and global equity prices have recently diverged

US leading global upturn in economic surprises

Blue Chip forecasters look for further significant monetary easing apart from Japan

Recent rise in global supply chain pressures could augur a pickup in global inflation pressures

Underperforming German economy generating increased policy uncertainty relative to Europe and the US

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Real GDP eased 0.3% SAAR (+2.1% y/y) during the first quarter of 2025 after increasing 2.4% in Q4’24 and 3.1% in Q3’24. A 0.4% increase had been expected in the Action Economics Forecast Survey. It was the first decline since Q1 2022.

Foreign trade subtracted 4.83 percentage points from growth last quarter as imports surged 41.3% (13.4% y/y) ahead of tariffs, which began to come into effect in the first quarter. The rise followed a 1.9% decline in Q4’24. Exports rose 1.8% (3.0% y/y) after easing 0.2% in Q4. Inventories added 2.25 percentage points to growth after subtracting 0.84 percentage point from Q4 growth.

Real final sales to domestic purchasers grew 2.3% (2.9% y/y) in Q1 after rising 3.0% in Q4. Personal consumption expenditures rose 1.8% (3.1% y/y) following a 4.0% gain. Durable goods spending fell 3.4% (+5.3% y/y) after surging 12.4% in Q4. Motor vehicle purchases declined 11.1% (+5.5% y/y) after strengthening 19.7% in Q4. Spending on home furnishings & appliances gained 1.5% (6.1% y/y) following a 5.4% rise. Recreational goods & vehicle outlays rose 2.5% (7.0% y/y) last quarter after a 13.9% Q4 increase.

Nondurable goods outlays rose 2.7% (3.0% y/y) following 3.1% growth in Q4. Apparel spending increased 6.7% (2.5% y/y) following a 5.0% rise. Food & beverage buying gained 2.5% (2.3% y/y) after a 1.8% increase. Gasoline & fuel oil purchases increased 4.6% (3.4% y/y) after falling 2.0% in Q4.

Spending on services increased 2.4% last quarter (2.7% y/y) after a 3.0% gain. Outlays on housing & utilities increased 3.4% (1.8% y/y) after rising 1.1% in Q4. Health care expenditures rose 4.0% (4.8% y/y) following a 4.7% strengthening. Transportation outlays increased 5.3% (4.6% y/y) after a 3.7% rise while recreation spending rose 4.7% (2.8% y/y) following a 4.5% rise. Restaurant & hotel expenditures declined 2.1% (+0.5% y/y) following a 2.8% rise. Financial services expenditures rose 1.9% (2.0% y/y) after a 3.1% Q4 increase.

Business fixed investment increased 9.8% (3.6% y/y) following a 3.0% decline in Q4. Expenditures on structures rose 0.4% (-0.4% y/y) after a 2.9% increase. Expenditures on producers’ durable equipment jumped 22.5% (8.0% y/y) after falling 8.7%.  Outlays on information processing equipment soared 69.3% (18.9% y/y) following a 7.3% decline. Industrial equipment investment fell 1.4% (-0.3% y/y) after easing 0.9%. Intellectual property product spending rose 4.1% (1.8% y/y) following a 0.5% decline. 

Residential structures investment increased 1.3% (-0.1% y/y) in Q1 after a 5.5% Q4 rise.

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Government spending fell 1.5% (+2.4% y/y) after a 3.1% Q4 rise. Federal government expenditures declined 5.1% (+2.9% y/y) after rising 4.0% in Q4. National defense expenditures declined 8.0% (+4.0% y/y) after increasing 4.8% in Q4. State & local government spending rose 0.8% (2.1% y/y) following a 2.5% rise.

The GDP price index rose 3.7% (2.6% y/y) after increasing 2.3% in Q4. It was the largest increase since Q4’22. A 2.4% increase had been expected. The PCE chain price index increased 3.6% (2.5% y/y) following a 2.4% rise. The PCE price index excluding food and energy rose 3.5% (2.8% y/y) after increasing 2.6% in Q4. The business fixed investment price index rose 0.4% (1.8% y/y) after 1.5% rise. The residential price index strengthened 3.9% (3.2% y/y) after a 1.9% rise while the government price index increased 4.7% (2.8% y/y) following a 2.1% rise.

The GDP data can be found in Haver’s **USECON** and **USNA** databases. **USNA** contains virtually all of the Bureau of Economic Analysis detail in the national accounts. The Action Economics consensus estimates can be found in **AS1REPNA**.

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- Decline in GDP is first in three years.
- Foreign trade subtracts substantially ahead of tariffs.
- Domestic final demand growth weakens.
- Price index strengthens with higher core PCE prices.

U.S. GDP Unexpectedly Declines in Q1’25; Prices Strengthen

Michael J. Moran

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High-side readings on the price indexes for personal consumption expenditures in January and February caused some concern about emerging price pressure, especially with some policies of the Trump administration possibly adding to the upward force. However, March brought notable relief, with the headline price index falling slightly (-0.04%). A marked decline in energy prices was helpful (-2.7%), but core prices also were subdued, increasing less than 0.1%.  Year-over-year changes were still above the Fed’s target of 2%, but only barely so for the headline measure (2.3%). The core index backed away from the reading of 3.0% in February, but the latest reading of 2.7% was in line with observations in the past year, and still uncomfortably above target.

Consumers roused from a winter slumber in March, with nominal outlays increasing 0.7%. With inflation restrained, real outlays also posted a gain of 0.7%. Spending on durable gods stood out, with real outlays advancing 3.2%. Real outlays for both nondurable goods and services rose 0.4%, a solid pace. Signs of life were certainly welcome after an average decline of 0.1% in January and February. The March rebound left growth of 1.8% (annual rate) in the first quarter.

The brisk increase in spending in March was supported by a solid gain in personal income (0.5% in both nominal and real terms). Growth in wage income was firm at 0.5%, while proprietors’ income was robust with a gain of 1.8% (not annualized!). The farm sector led the advance in proprietors’ income, but the nonfarm sector also was strong (0.6%).

The personal income and consumption figures are available in Haver’s **USECON** database with detail in the **USNA** database. The Action Economics forecasts are in **AS1REPNA**.

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- Price pressure eases.
- Spending rebounds after two soft months.

Personal Income, Consumption, and Prices in March

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The Pending Home Sales Index, a forward-looking home sales measure based on contract signings, from the National Association of Realtors rose 6.1% to 76.5 (-0.6% y/y) during March after rising a little-revised 2.1% in February. These changes followed a 4.6% January decline.

The rise in March sales occurred as the rate on a 30-year mortgage eased to an average 6.65% from 6.84% in February. This rate was well above a low of 2.68% averaged in December 2020.

Pending home sales were up in most regions of the country. Sales in the Midwest rose 4.9% (1.4% y/y) last month after rising 1.8% in February. Sales in the South increased 9.8% (-0.4% y/y) following a 5.8% February rise. Sales in the West improved 4.8% (-2.0% y/y) after falling 3.0% in February. Sales in the Northeast were off 0.5% (-3.0% y/y) in March after falling 0.9% in February.

The pending home sales index measures sales at the time the contract for the purchase of an existing home is signed, similar to the Census Bureau's new home sales data. In contrast, the National Association of Realtors' existing home sales data are recorded when the sale is closed, which is usually a couple of months after the sales contract has been signed. In developing the pending home sales index, the NAR found that the level of monthly sales contract activity leads the level of closed existing home sales by about two months.

The series dates back to 2001 and are available in Haver's **PREALTOR** database. Weekly mortgage interest rates from the Mortgage Bankers Association can be found in the **WEEKLY** database.

- Sales rise to highest level in four months.
- Strength is evident throughout most of country.

U.S. Pending Home Sales Surge in March

Sandy Batten

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The employment cost index (ECI) for civilian workers, arguably the most accurate measure of labor compensation in the United States, rose 0.9% q/q (3.6% y/y) in Q1, the same quarterly increase as in last year’s Q4, according to the Bureau of Labor Statistics. The quarterly gains have fluctuated between 0.8% and 1.0% for the past six quarters. The Action Economics Forecast Survey had expected a 0.9% q/q increase and a 3.5% y/y gain.

Wages and salaries for civilian workers rose 0.8% q/q (3.5% y/y) in Q1, down from 1.0% q/q in Q4. This tied the Q3 2024 quarterly rise as the smallest increase since Q2 2021. It was also the smallest y/y increase since Q2 2021. Benefits increased by an outsized 1.2% q/q (3.9% y/y) in Q1 versus 0.8% q/q in Q4. This is the largest quarterly gain since Q2 2022. In general, employment cost gains remain above the pace observed prior to the pandemic but are slowing gradually.

Private industry workers’ compensation rose 0.8% q/q (3.4% y/y) in Q1, down from 0.9% q/q (3.6% y/y) in Q4. Wages and salaries for private industry workers increased 0.8% q/q (3.4% y/y) in Q1 versus 0.8% q/q (3.7% y/y) in Q4. The quarterly gain in Q1 tied that in Q3 2024 as the smallest increase since Q4 2020. Benefits for private industry workers jumped 1.2% q/q (3.6% y/y). the largest quarterly gain since Q2 2022. The acceleration in benefits in Q1 was primarily in service-producing industries.

Compensation in private goods-producing industries increased 1.0% q/q (3.2% y/y) in Q1, the largest quarterly gain in five quarters, versus a 0.7% q/q increase in Q4. Compensation in construction jumped 1.3% q/q, its largest quarterly increase since Q2 2022, up from a 0.6% q/q gain in Q4. Manufacturing compensation growth slowed to 0.7% q/q, its slowest quarterly advance since Q4 2020, from 0.8% q/q in Q4. Compensation in private service-producing industries increased 0.8% q/q (3.5% y/y), down slightly from a 0.9% q/q gain in Q4. Compensation in education and health services jumped 1.3% q/q, its largest quarterly gain since Q3 2023. In contrast, compensation in other services edged up 0.1% q/q in Q1, its smallest quarterly advance since before the pandemic.

The employment cost index measures the change in the cost of labor, free from the influence of employment shifts across occupations and industries. It is provided by the Bureau of Labor Statistics and is available in Haver’s **USECON** database. Consensus estimates from the Action Economics Forecast Survey are in Haver’s **AS1REPNA** database.

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- Compensation grew 0.9 q/q in Q1, the same pace as in Q4.
- Wage growth slowed to 0.8% q/q while benefits surged 1.2% q/q, their largest quarterly increase since Q2 2022.

Employment Cost Growth Steady in Q1 2025

Kathleen Stephansen, CBE

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The ADP National Employment Report indicated that nonfarm private sector payrolls rose 62,000 (1.4% y/y) during April after increasing 147,000 (1.4% y/y) during March, revised from 155,000. A 124,000 April rise in ADP employment had been expected in the Action Economics Forecast Survey.

Growth in median annual pay for "job stayers" eased to 4.5% y/y during April, from 4.6% y/y in March and from 4.7% y/y in the prior two months. Manufacturing sector pay grew 4.6% y/y during April, down from 4.8% y/y in March. Construction sector pay was unchanged at 4.7% y/y. Natural resource & mining sector pay grew 4.4% y/y. Financial sector pay rose 5.1% y/y, while education & health services pay rose 4.7% y/y. Leisure & hospitality pay also increased 4.7% y/y. Professional & business service sector pay increased 4.3% y/y as did trade, transportation & utilities pay. Information pay rose 4.1% y/y. Median annual pay for “job changers” rose 6.9% y/y after 6.7% y/y in March.

Small business hiring (less than 50 employees) rose 11,000 (0.6% y/y) after rising 18,000 (0.6% y/y) in March, revised down from 52,000. Employment at medium-sized firms (50-499,000 employees) rose 40,000 (1.1% y/y) after rising 43,000 (1.1% y/y). Large business hiring (500+ employees) rose 12,000 (3.4% y/y) in April, after rising 61,000 (3.6% y/y) in March, revised from 59,000.

Goods-producing employment rose 26,000 (1.3% y/y) in April, after rising 16,000 (1.3% y/y) during March, revised from 24,000. Manufacturing jobs rose 4,000 (-0.2% y/y) after rising 17,000 (-0.3% y/y) in March. The number of construction sector jobs rose 16,000 (3.4% y/y) in April, following a 2,000 (3.6% y/y) March increase, revised from 6,000. Natural resources & mining jobs rose 6,000 (2.8% y/y) in April after falling 3,000 (+1.9% y/y) in March.

The number of service-producing jobs rose 34,000 (1.4% y/y) during April, following a rise of 131,000 (1.4% y/y) in March. Professional & business services employment fell 2,000 (0.6% y/y) after rising 46,000 (0.7% y/y) in the prior month, revised from 57,000. Employment in the financial industry rose 20,000 (2.1% y/y) in April, after rising 38,000 (2.0% y/y) in March. Leisure and hospitality employment increased 27,000 (3.0% y/y), following a 23,000 (2.9% y/y) March increase, revised from 17,000. The number of education & health care jobs fell 23,000 (1.6% y/y) in April, following a 15,000 (1.8% y/y) rise in March, revised from 12,000. Information sector employment fell 8,000 (-0.1% y/y) after a rise of 3,000 (0.2% y/y) in March. The number of jobs in trade, transportation & utilities rose 21,000 (0.4% y/y) in April, after falling 4,000 (+0.4% y/y) in March, revised from a 6,000 fall. Employment in “other” services rose fell 1,000 (+3.2% y/y) following a 10,000 (3.4% y/y) rise in March, revised from 11,000.

By region, employment in the Northeast increased 10,000 (1.9% y/y) in April, following an increase of 95,000 (2.0% y/y) in March, revised from 89,000. Employment in the Midwest rose 42,000 (1.5% y/y) after a gain of 84,000 (1.4% y/y) in March, revised from 81,000. In the South, employment rose 3,000 (1.3% y/y) during April, after rising 10,000 (1.4% y/y) in March, revised from 27,000. In the West, employment rose 9,000 (0.6% y/y) after declining 43,000 (+0.6% y/y), revised from a 41,000 decline in March.

The ADP National Employment Report and Pay Insights data can be found in Haver's **USECON** database. Historical figures date back to January 2010 for private employment. Pay data date back to October 2020. The expectation figure is available in Haver's **AS1REPNA** database.

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- Employment increase is modest in both services & factory sectors.
- Wage growth for “job stayers” moderates.
- Small and medium-sized business employment slows.

Economy in Brief: September 2002

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