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Employment is Climbing

The February employment data is out, and the number is good.  Using the BLS Household Survey data (not seasonally adjusted) we saw a 1.3% climb in employment from one year ago.  This is a reasonable number; not great, but good enough to indicate that the economy is still expanding in terms of jobs.  Private sector employment (derived from a different BLS payroll survey) was up 1.9% year-over-year.  Government employment (also derived from the payroll survey) was down 0.2% year-over-year.

The Economic Impact of the Situation in Ukraine

Events in the Ukraine have captured the attention of political leaders and the media.  Russia’s move into the Crimea Peninsula has set off a wave of protests from the US and other nations.  The isolation of Russia and sanctions against them are being talked about in Washington if Mr.

Camp’s Tax Reform Plan

It is too bad that Dave Camp’s (Chairman of the House Ways and Means Committee, R-MI) tax reform plan doesn’t have much chance (and that is putting it optimistically) of surviving a Senate vote after it clears the House.  I think it should receive serious consideration because it has some benefit for most groups and some pain for most groups.  It reminds me of the essentially even-handed approach taken by the Ryan-Murray budget.  In my opinion the plan does not simplify the tax code nearly enough, but I favor the Fair Tax over all other tax plans.  Nevertheless, Camp’s p

A Tough January in the Housing Industry

January was a tough month in the housing industry, both in terms of new construction and sales of existing homes.   The decline in the Housing Starts annual year-over-year comparison (12/12 rate-of-change) is a clear leading indicator that not only the housing industry is slowing now, but that the entire economy is likely to slow in the second half of the year.  Admittedly, the polar vortex may have contributed to steeper-than-normal December-to-January decline of 14.96%.

Report on the Minimum Wage Increase

The Congressional Budget Office, CBO, issued its report on the President’s plan to boost the minimum wage from $7.25 to $10.10.  The impact of such a move has been a popular question while talking to groups around the country.  The CBO report is consistent with what I have been saying: it will help some and hurt others in that it will keep some people from getting a job at all.

Troubles on the Job Horizon

The Stock Market has rebounded of late, the US Congress agreed to lift the debt ceiling for a year, and January Retail Sales were solid.  Life seems good on the surface.  Underneath the surface, things are not looking nearly as rosy.  It appears that job growth will be slowing in the future, and the US economy along with it. 

Don’t Be Misled by Headlines

In a recent article, the headline said that the January drop in retail sales bodes ill for GDP reports.  That is certainly an attention-getting headline, especially because it suggested that GDP may we be weakening, and a macroeconomic problem is imminent.  This is another case where reality is much different than the headline. 

Economy Larger Factor than Weather

We have looked at manufacturer, distributor, and retail sales over decades and have found that the economy is a significantly larger factor than the weather.  We have looked at pool covers, yard tools, air conditioners (central air and window units), and other similar series, and they all have a stronger relationship to the economy, despite the fact that many people feel it’s the weather.

Looking Past the Doom and Gloom Headlines

The stock market is moving lower and headlines are filled with bad news. We are reading about jittery markets, manufacturing decline in the US and China, the decline in the Purchasing Managers Index, and investor fears, to name a few recent phrases I have come across.

GDP is UP

Fourth-quarter 2013 GDP was released by the government recently, and the data looks good. GDP (adjusted for inflation) is at a record high. The “record high” comment is for anyone who still thinks the recovery from the Great Recession is incomplete. The fourth quarter came in 2.7% higher than one year earlier. The average year-over-year growth rate for the past decade is 1.8%, so the posted gain is really pretty good.

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