Thursday, July 12, 2012

It's The Economy Stupid: Import Prices and Jobless Claims

Import Prices Decrease More Than Estimated

Jobless Claims in U.S. Come Down as Fewer Auto Plants Shut Down

 

Economic Event

Period

Economic Survey

Actual Reported

Original Prior

Revised Prior

Import Price Index MoM

JUN

-1.8%

-2.7%

-1.0%

-1.2%

Import Price Index YoY

JUN

-1.5%

-2.6%

-0.3%

-0.5%

Initial Jobless Claims

JUL 7

372K

350K

 374K

376K

Continuing Claims

JUN 30

3300K

3304K

3306K

3318K

 

 

Import Prices Decrease More Than Estimated – THIS IS A GOOD THING

Jobless Claims in U.S. Come Down as Fewer Auto Plants Shut Down – THIS IS A GOOD THING TOO, BUT READ IT CLOSELY,  “FEWER”.  YAY!?

 

Fewer Americans than forecast filed first-time claims for unemployment insurance payments last week, reflecting the volatility of applications during the annual auto-plant retooling period.

 

Applications for jobless benefits decreased by 26,000 in the week ended July 7 to 350,000, the fewest since March 2008, Labor Department figures showed today. Economists forecast 372,000 claims, according to the median estimate in a Bloomberg News survey. Last week’s distortion is likely to unwind slowly

over coming weeks, a Labor Department spokesman said as the data was released to the press.

    

Automakers including Chrysler Group LLC, Ford Motor Co. and Nissan Motor Co. are keeping more plants than normal open during this time of year to fulfill demand and replenish inventories.

 

For that reason, it may take time to determine if the labor market is making any REAL progress.

 

 

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“The Fed has gone about as if the problem is a shortage of liquidity.  That is not the basic problem.  The basic problem is uncertainty that the balance sheets of financial firms are credible.”

~ 2009, Anna Schwartz, Economist, 1915-2012

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John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury

Ph:  225-342-0013

Fx:  225-342-9721

Email:  jbroussard@treasusry.state.la.us

 

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