Weekly Economic Update: February 28- March 4, 2011
Overview: 192,000 payroll jobs were added in February and the unemployment rate edged down to 8.9%. Personal income rose 1.0% in January as spending increased 0.2%. The ISM index rose 0.6 points to 61.4 in February as the ISM services index edged up 0.3 points to 59.7. Auto sales were up 6.4% in February. Construction spending fell 0.7% in January. Factory orders increased 3.1% in January. The price of oil continued to rise and is up 21% over the past two weeks. Initial jobless claims fell by 20,000 to a level of 368,000 for the week ended 2/26.
- The economy added 192,000 payroll jobs in February as the unemployment rate edged down to 8.9%. This marks the first time since April of 2009 that the unemployment rate has been below 9.0%. Job gains came primarily from: professional and business services, health care, manufacturing, construction, and transportation and warehousing.
- Personal income jumped up more than expected in January, with a 1.0% increase; personal spending rose 0.2%.
- The ISM index was up 0.6 points in February to 61.4.
- The ISM services index edged up 0.3 points to 59.7 in February.
- Auto sales rose 6.4% in February to an annual rate of 13.44 million units. Sales were up 27.5% from a year ago.
- Construction spending fell 0.7% in January.
- Factory orders jumped up 3.1% in January due to strong demand for commercial aircraft. Excluding transportation, orders were up 0.7%.
- The price of oil continued to rise, closing the week at $104.42/barrel—a 21% over just the past two weeks. The previous peak oil price of $145.86/barrel was reached in July of 2008, and was followed by a near-term low of $35.35/barrel in December of 2008.
- Initial jobless claims fell by 20,000 to 368,000 for the week ended February 26th.