September 2009

The U.S. economy in the second quarter contracted at slower pace earlier estimated by the Department of Commerce.

The Commerce Department today released its final estimated for the second quarter which showed gross domestic product fell at a 0.7 percent annual rate instead of the 1.0 percent decline reported last month. Improved consumer and business spending cushioned the impact of a record decline in inventories, according to a the report.

The second-quarter contraction market the first time since the government began keeping records in 1947 that real Gross Domestic Product has shrunk for four consecutive quarters.

The shallow decline in activity in the second quarter reflected more moderate drops in consumer spending and business investment than previously estimated. Consumer spending, which normally accounts for over two-thirds of U.S. economic activity, fell at a 0.9 percent rate in the second quarter — smaller than the previously estimated 1.0 percent decline. Spending rose at a 0.6 percent rate in the previous quarter. Read the rest of this entry »

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The Conference Board Consumer Confidence Index, which had improved in August, dipped in September. The Index now stands at 53.1 (1985=100), down from 54.5 in August. The Present Situation Index decreased to 22.7 from 25.4. The Expectations Index declined to 73.3 from 73.8 last month.

Consumers’ assessment of current conditions was less favorable in September. Those claiming business conditions are “bad” increased to 46.3 percent from 44.6 percent, while those claiming conditions are “good” increased to 8.7 percent from 8.5 percent. Consumers’ appraisal of the job market was also less favorable. Those claiming jobs are “hard to get” increased to 47.0 percent from 44.3 percent, while those claiming jobs are “plentiful” decreased to 3.4 percent from 4.3 percent. Read the rest of this entry »

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New U.S. home sales posted a tepid 0.7 percent increase last month, again missing Wall Street expectations and providing more evidence that the housing market recovery remains tentative.

The Commerce Department says sales inched up to a seasonally adjusted annual rate of 429,000 from a downwardly revised 426,000 in July.

While it was the fifth straight increase and the strongest report in 11 months, sales were down 4.3 percent from the same month last year.

The median sales price of $195,200 was off 11.7 percent from $221,000 from a year earlier, and 9.5 percent below July’s level of $215,600.

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The Nevada State Department of Taxation reported that statewide taxable sales for July 2009 were $3,075,334,130 down 18.8 percent from a year ago. The report said that 15 of Nevada’s 17 counties recorded decreases in taxable sales for July 2009 compared to July 2008. Only Churchill and Humboldt Counties recorded positive taxable sales for the period. Gross revenue collections from sales and use taxes were $242,037,145 for July 2009 which, a 13.5 percent decrease from July 2008.

The following are a sampling of numbers from the report:

Clark County Sales: Down 20.6%
Washoe County Sales: Down 15.2%
Construction Industry Classification: Down 28%
Merchant Wholesalers – Durable Goods: Down 35.75%
Motor Vehicle and Parts Dealers: Down 31.7%
General Merchandise Stores: Down 10.8%
Clothing & Accessories Stores: Down 9.7%
Food & Beverage Stores: Down 3.2%
Home Furniture and Furnishings: Down 32%
Accommodations: Down 20%
Food Services and Drinking Places: Up 2.3%

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Durable goods orders drop 2.4 percent in Aug
 
New orders for long-lasting U.S. durable (manufactured) goods, a leading indicator, fell in August, dropping by their biggest margin in seven months, following a plunge in commercial aircraft orders, the government reported on Friday.

The Commerce Department reported that durable goods orders tumbled 2.4 percent, the largest decline since January and down 24.9 percent from a year ago, after rising by a downward revised 4.8 percent in July. New orders for July were previously reported to have increased 5.1 percent.

The data coming on the heels of a report on Thursday that showed a drop in existing home sales in August was a reminder that recovery from the worst recession since the 1930s would be uneven. Analysts, as usual, were “surprised” over that decline, as well as the deterioration of durables orders.

Non-defense aircraft and new parts orders plunged 42.2 percent in August, likely reflecting a drop in civilian aircraft orders received by Boeing (BA.N). New orders for transportation equipment dropped 9.3 percent. Read the rest of this entry »

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