Weekly Economic Update: August 14 – August 18, 2017

August 14, 2017

Download PDF

CHART OF THE WEEK

Other Countries Undercut U.S. Corporate Tax Rate

The chart shows the combined corporate income tax rates in 2000 and 2017 of countries in the OECD (Organization for Economic Cooperation and Development). All OECD member countries except Chile lowered their corporate tax rate, even if it was already lower than the U.S. rate, to attract more business and investment. The U.S. rate remained virtually unchanged and is now the highest in the developed world.

LAST WEEK

News & Commentary Weekly Highlights

Economics21: The Missing Millions

Wall Street Journal: U.S. Productivity Rose at 0.9% Rate in Second Quarter

Wall Street Journal: What Econ 101 Can Teach Us About Artificial Intelligence

Wall Street Journal: U.S. Sanctions Venezuelans It Said Helped Form Assembly

Top Economic Indicator Highlights

Job Openings and Labor Turnover Summary (JOLTS) (June 2017; seasonally adjusted levels)

Category (in millions) June May April

Job Openings 6.163 5.702 5.967

Hires 5.356 5.459 5.043

Separations 5.224 5.245 5.008

Noteworthy: The total number of job vacancies recorded a new high in the series history at 6.163 million job vacancies. Historically, the number of hires has always exceeded the number of openings. However, since late 2014 this has changed. A JEC hearing explored reasons and remedies for this situation last month.

Productivity and Costs (Second Quarter 2017; quarterly change at annualized rates)

Category 2017Q2 2017Q1 2016Q4 2016Q3 2016Q2

Nonfarm Labor Productivity 0.9% 0.1% 1.3% 2.5% 0.8%

Noteworthy: Labor productivity, an essential ingredient to a rising standard of living, increased at a 0.9% annual rate for the second quarter of 2017.

Consumer Price Index (July 2017; percentage changes are from same month last year)

Category July June May

Core CPI (excludes food and energy) 1.70% 1.71% 1.74%

Headline CPI 1.73% 1.65% 1.87%

Noteworthy: The core CPI inflation rate slowed slightly this month to 1.70% from 1.71% in June. Since peaking in January 2017 at 2.26%, it has declined six consecutive months. The headline CPI inflation rate accelerated somewhat after declining four consecutive months.