The state of the economy was the subject of one of our posts last week. The New York Fed has just released a concise and useful summary of current indicators. These are summarized below.
Also, a link to the full report also follows the summary for those interested in additional information.
Overview of the August 2017 Snapshot
- Real personal consumption expenditures were essentially unchanged in June, suggesting that consumer spending entered Q3 with weak momentum.
- Investment in business equipment increased solidly in Q2, but capital spending indicators are signaling only modest near-term momentum.
- Despite some pause in Q2, housing indicators still point to continued gradual improvementin this sector. Real residential investment declined in Q2 largely from the flattening in multi-family starts and some payback for a weather-related sizable rise in single-family starts in Q1.
- Payroll growth was solid in Julyand the unemployment rate fell back to its lowest reading since May 2001. The employment-to-population ratio and the labor force participation rate increased slightly. Growth in labor compensation measures remained subdued.
- Monthly readings on PCE inflation continued to be soft, suggesting inflation may be stabilizing for now at a level that is somewhat below the FOMC’s longer-run objective.
- S. equity indexes rose and the price of oil has firmed since early July. The nominal yield on the 10-year Treasury note and the trade-weighted index for the U.S. dollar both moved down. Volatility remains very low.
The full report can be accessed here:
About the New York Fed’s Snapshot
U.S. Economy in a Snapshot, produced by the Research Function of the New York Fed, is designed to provide a tight yet comprehensive overview of current economic and financial developments. This monthly packet presents charts and commentary on a broad range of topics that include labor and financial markets, the behavior of consumers and firms, and the global economy. What’s more, Snapshot aims to cover special topics such as movements in commodity prices, developments in the Second District, or findings from the New York Fed Survey of Consumer Expectations.