Weekly Economic Update: Nobember 1-5, 2010
Overview: The economy added 151,000 jobs in October as the unemployment rate remained unchanged at 9.6%. The Fed held constant its target fed funds rate at 0.0%-0.25% and announced a $600 billion Treasury purchase plan. Personal income fell 0.1% in September as spending rose 0.2%. The ISM index rose 2.5 points to 56.9 in October; the ISM services index rose 1.1 points to 54.3. Productivity increased 1.9% in the 3rd quarter. Auto sales were up 4.2% in October. Construction spending increased 0.5% in September as pending home sales fell 1.8%. Consumer credit increased by $2.1 billion in September. Factory orders rose 2.1% in September. Initial jobless claims fell by 20,000 to a level of 457,000 for the week ended 10/30.
The economy added 151,000 jobs in October as the unemployment rate held steady at 9.6%. The private sector added 159,000 jobs. The labor force fell by 254,000 and is more than one million below its prior peak.
The Federal Reserve held constant its target for the federal funds rate at a range of 0.0% to 0.25% and announced its plans to purchase $600 billion in Treasuries over the next eight months. The Fed sighted the weak recovery and low inflation as its reasons for the additional Treasury purchases.
Personal income fell by 0.1% in September; personal spending rose 0.2%.
The ISM index rose by a greater-than-expected 2.5 points to 56.9 in October.
The ISM services index rose 1.1 points to 54.3 in October.
Productivity increased at an annual rate of 1.9% in the 3rd quarter, after having declined 1.8% in the 2nd quarter.
Auto sales rose 4.2% to an annual rate of 12.26 million units in October.
Construction spending surprised on the upside with a 0.5% increase.
Pending home sales unexpectedly declined 1.8% in September.
Consumer credit rose by $2.1 billion to 2.412 trillion in September. This marks the first increase in consumer credit since January 2010, and only the second increase over the past 20 months.
Factory orders were up 2.1% in September.
Initial jobless claims rose by 20,000 to 457,000 for the week ended October 30th.
