Banks and the Economy

Fed to Consider Shrinking Balance Sheet in Coming Months

The Federal Open Market Committee indicated support for continued gradual rate increases in minutes from their June 13-14 meeting. The Committee voted to lift rates 25 basis points in June and signaled one more hike in 2017 in updated projections. The minutes reflected continued division on the timing of shrinking the Fed’s balance sheet, though the Committee expects to begin ...

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Manufactured Goods Orders Fell in May

New orders for manufactured goods fell 0.8% to $464.9 billion in May, according to the U.S. Census Bureau. It was the second consecutive monthly decrease, following a 0.3% April slide. New orders for manufactured durable goods decreased 0.8% for the second consecutive month, landing at $229.1 billion in May. Orders for transportation equipment drove the decline, falling 3.0% to $75.9 ...

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Construction Spending Holds Steady in May

Construction spending was virtually unchanged in May, landing at a seasonally adjusted annual level (SAAL) of $1,230.1 billion, according to the Census Bureau. April’s spending estimate was revised to a rate of $1,230.4 billion. May’s figure is 4.5% greater than the May 2016 estimate of $1,177.0 billion. Total private construction was $943.2 billion SAAL, a 0.6% decrease from the revised ...

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Manufacturing Sector Expanded in June

The ISM Manufacturing Index registered 57.8 points in June, up 2.9 percentage points from the previous month, according to the Institute for Supply Management. June’s reading indicates a tenth consecutive month of expansion in manufacturing, as readings over 50 points denote expansion. Of the eighteen manufacturing industries, fifteen reported growth, while three reported contraction. Nine of the ten index components ...

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Consumer Sentiment Declined in June

Consumer Sentiment fell 2.0 points in June to 95.1, according to the University of Michigan Consumer Sentiment Index. The Current Economic Conditions Index rose 0.8 point to 112.5, while the Consumer Expectations Index decreased 3.8 points to 83.9. “Although consumer confidence slipped to its lowest level since Trump was elected, the overall level still remains quite favorable. The average level ...

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First Quarter GDP Revised up to 1.4%

Real GDP for the First quarter of 2017 grew at a seasonally adjusted annual rate of 1.4%, according to the Bureau of Economic Analysis’s revised estimate, up slightly from the second estimate of 1.2%. The general picture of economic growth remained the same. The increase in the estimate was mostly due to consumer spending on services and exports being larger than ...

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