Banks and the Economy

Manufacturing Sector Grew at a Slower Rate in July

The ISM Manufacturing Index registered 58.1 points in July, down 2.1 percentage points from the previous month, according to the Institute for Supply Management. July’s reading indicates the twenty-third consecutive month of expansion in manufacturing, as readings over 50 points denote expansion. Of the eighteen manufacturing industries, seventeen reported growth, while one reported contraction. Nine of the ten index components ...

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Construction Spending Rate Fell 1.1 percent in June

Construction spending decreased 1.1 percent at a seasonally adjusted annual level (SAAL) of $1,317.2 billion, in June, according to the Census Bureau. May’s spending estimate was upwardly revised to $1,332.2 billion. June’s figure is 6.1 percent greater than the June 2017 estimate of $1,241.3 billion. Total private construction was $1,019.8 billion SAAL, a 0.4 percent decrease from the revised May ...

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ADP: 219,000 Jobs Added in July

The non-farm private sector added 219,000 jobs in July, according to the ADP National Employment Report. This followed an upwardly revised 181,000 job increase in June. Small businesses with fewer than 50 employees gained 52,000 jobs. Medium-sized businesses with 50-499 employees created 119,000, while large businesses added 48,000 jobs. “The labor market is on a roll with no signs of ...

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Consumer Confidence Ticks Up in July

The Conference Board Consumer Confidence Index increased 0.3 point to 127.4 in July. The Present Situation Index increased 4.2 points to 165.9. The Expectations Index declined 2.3 points to 101.7. “Consumer confidence gained marginal ground in July, after a modest decline in June,” said Lynn Franco, Director of Economic Indicators at The Conference Board. “Consumers’ assessment of present-day conditions improved, ...

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Second Quarter GDP Grew 4.1 percent

Real GDP grew at a seasonally adjusted annual rate of 4.1 percent during the second quarter of 2018, according to the Bureau of Economic Analysis’s “advance” estimate, up from 2.2 percent in the first quarter.

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Durable Goods Orders Rose 1.0 percent in June

New orders for manufactured durable goods increased 1.0 percent in June to $251.9 billion, following a 0.6 percent May decline, according to the U.S. Census Bureau. Transportation equipment led the increase, rising 2.2 percent to $87.7 billion over the month. New orders, excluding the transportation sector, rose 0.4 percent. Excluding defense, new orders increased 1.5 percent. Shipments of manufactured durable ...

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Treasury Submits Proposed Pass-Through Regulations to OMB

The Treasury Department on Monday submitted to the Office of Management and Budget the first group of proposed regulations related to a provision of the tax reform bill that established a 20 percent deduction for pass-through entities, including Subchapter S corporations.

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