Overview:   The economy lost 54,000 jobs in August as the unemployment rate edged up to 9.6%.  The ISM index rose 0.8 point to 56.3 in August; the ISM services index fell 2.8 points to 51.5.  Personal income edged up 0.2% in July; spending rose 0.4%.  Productivity for the 2^nd quarter was revised downwards to -1.8%.  The Case-Schiller index rose 4.2% in June.  Construction spending fell 1.0% in July as pending home sales rose 5.2%.  Auto sales fell 0.6% to a SAAR of 11.46 million units.  Factory orders edged up 0.1% in July.  Initial jobless claims fell by 6,000 to a level of 472,000 for the week ended 8/28.

The economy lost 54,000 jobs in August as the unemployment rate edged up to 9.6%. The private sector added 67,000 jobs in August.

The ISM index unexpectedly rose 0.8 point to 56.3 in August. Some attributed the market rally on Wednesday to this unexpected rise.

The ISM services index fell 2.8 points to 51.5 in August.

Personal income edged up 0.2% in July as personal spending rose 0.4%.

Productivity for the 2^nd quarter was revised downwards to a decline of 1.8%, from a previously reported decline of 0.9%. Although the decline in productivity does not bode well for business profits, it does signal a potential uptick in employment if businesses desire to increase production.

The Case-Schiller home price index was up 4.2% in June. The index is 28% below its peak in July of 2006.

Construction spending fell 1.0% in July.

Pending home sales unexpectedly rose 5.2% in July.

Auto sales fell 0.6% in August to an annual pace of 11.46 million units.

Factory orders edged up 0.1% in July.

Initial jobless claims fell by 6,000 to 472,000 for the week ended August 28^th.