Banks and the Economy

ADP: 172,000 Jobs added in June

The non-farm private sector added 172,000 jobs in June, according the ADP National Employment report, an increase from June’s downwardly revised growth of 168,000. Service-providing employment provided all of the month’s growth, while the goods-producing sector shed jobs during the month. Small businesses with fewer than 50 employees added 95,000 jobs, up from 84,000 in May. Medium-sized businesses with 50-499 ...

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Job Cuts Slowed in the Second Quarter

Employers announced plans to cut 38,536 jobs in June, according to a report issued by Challenger Gray & Christmas. June’s announced cuts were 28% higher than May’s total, but still well below the 12 month average. The pace of cuts in the second quarter was 27% lower than the first quarter of the year. “It is not unusual to see ...

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FOMC Minutes: No Rate Hike amid Slow Job Growth

Fed officials expressed a degree of uncertainty regarding the slowdown in payroll employment gains in the minutes of their June 14 – 15 Federal Open Market Committee (FOMC) meeting. Participants observed that transitory factors may have understated payroll growth, however many thought the underlying pace of growth had slowed from previous months. Despite weaker labor market growth, participants noted that ...

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ISM: Non-Manufacturing Sector Expands

The ISM Non-Manufacturing Index registered 56.5 points in June, up 3.6 points from May’s rate and marking the 77th consecutive month of growth in the sector. Fifteen non-manufacturing industries reported growth in June, while three reported contraction. Growth in the Business Activity Index rose to 59.5 points, up 4.4 points from May’s reading. Respondents reported seeing “greater demand for services ...

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Foreign Trade Deficit Expanded in May

The U.S. international trade deficit increased in May to $41.1 billion, up $3.8 billion from April, according to the U.S. Census Bureau and the Bureau of Economic Analysis. The widening of the deficit was driven by a $3.4 billion increase in imports and a $0.3 billion decrease in exports. The goods deficit increased $3.7 billion to $62.2 billion, while the ...

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Factory Orders Declined in May

New orders for manufactured goods, down following two consecutive monthly increases, fell $4.6 billion or 1.0 percent to $455.2 billion, according to the U.S. Census Bureau. This followed a 1.8 percent increase in April. Shipments, down three of the last four months, decreased $0.6 billion or 0.2 percent to $231.6 billion. Inventories, down ten of the last eleven months, decreased ...

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OCC: Bank Trading Revenues Increase in Q1

Commercial banks reported total trading revenue of $5.8 billion in the first quarter of 2016, up from $4.3 billion in the previous quarter, according to the OCC’s Quarterly Report on Bank Trading and Derivatives Activities released today.

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Fed Approves U.S. Banks’ Capital Plans

The Federal Reserve today approved the capital plans of 30 out of 33 large banks participating in the Comprehensive Capital Analysis and Review. Only two banks -- both foreign -- saw their plans rejected, while one U.S. bank won a conditional “non-objection.”

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Personal Income and Consumption Rose in May

Personal income increased 0.2%, $37.1 billion in May, according to the Bureau of Economic Analysis, down from a 0.5% gain in April. Personal consumption expenditures also increased, rising 0.4% or $53.5 billion. Real disposable income – personal income less personal taxes – increased 0.1%, compared with a 0.2% increase in April. The personal savings rate – personal savings as a ...

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Consumer Confidence Improved in June

The Conference Board Consumer Confidence Index rose to 98.0 in June, up 5.6 points from the previous month. The Present Situation Index rose 5.1 points to 118.3, while the Expectations Index rose 6.0 points to 84.5. “Consumers were less negative about current business and labor market conditions, but only moderately more positive, suggesting no deterioration in economic conditions, but no ...

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