Just the facts...
| Overall Economic Outlook August = 68; July = 69; June = 69; May = 69; Aug '16 = 61 (>80 = robust; <30 = weak) |
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| (How the economic outlook is calculated.) | ||||||
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| Business Cycle Indicators 6 |
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Economic Measures
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Other Economic Indicators
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| Business Cycle Indicators: | ||||||
| Econ P.I. selects business cycle indicators based on their track record of signalling economic conditions. Follow these 15 indicators and you will understand the current state of the economy, including clear warnings of a recession. Red headings mark the most recent updates. EMA = Exponential moving average |
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| Consumer Sentiment - August End-of-Month (released 9/1) | ||||||
 August 3-month EMA: 94.8Importance: The Index of Consumer Sentiment, published by the University of Michigan, measures the optimism that consumers feel about the economy and their own personal well-being. U of M source link |
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| Weekly Unemployment Claims, Monthly Average - August | ||||||
 August monthly avg: 236,750Importance: Historically, unemployment claims have trended upward a year or more prior to recessions. DOL source link |
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| Building Permits - July (released 8/24) | ||||||
 July 3-month EMA: 1.24 millionImportance: Building permits are considered to be a leading indicator. According to the National Association of Realtors, housing and housing related services account for approximately 15% of GDP. U.S. Census source link |
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| Job Openings Per 100 Workers - End of July (released 9/12) | ||||||
 July 3-month EMA: 3.78Importance: Job openings trend closely with overall economic growth. JOLTS data is taken from "a sample of nonfarm establishments" and is subject to significant monthly revisions. Following a three-month moving average is recommended. Measuring job openings per 100 persons in the workforce provides better comparative data from year to year. BLS source link |
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| Temporary Employment - August (released 9/1) | ||||||
 August reported: 3.038 millionImportance: Historical data shows that temporary workers are generally the first hired or fired by firms as economic conditions change, making temporary employment a useful leading indicator. BLS source link |
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| Real Retail Sales Per Capita - August (released 9/15) | ||||||
 August 3-month EMA: $1,457 (chained to current dollars)Importance: Retail sales are viewed as a coincident indicator, meaning that it reflects the current state of the economy. U.S. Census link |
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| ISM Nonmanufacturing (NMI®) - August (released 9/6) | ||||||
 August 3-month EMA: 55.4Importance: The nonmanufacturing sector accounts for approximately 80% of economic output. Readings above 50 indicate this sector is expanding. Readings below 48.9 have coincided with negative growth in the overall U.S. economy. ISM source link |
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| Cass Freight Index TM - 2017 | ||||||
 Annualized: 1.08Importance: The annualized CFITM shows a clear pattern of decline prior to recessions. The index is annualized because of its highly seasonal nature, making it easier to spot trends from year to year. 1990 has a base year value of 1.0. (Due to seasonal variations, 2017 is estimated until 5 months of data are available.) Cass source link |
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| St. Louis Fed Financial Stress Index, August Monthly Average | ||||||
 August monthly avg: -1.508Importance: The St. Louis Fed states that the "STLFSI measures the degree of financial stress in the markets..." A zero value indicates normal market conditions,while a value above zero indicates above-average financial market stress. Values at or near "1" have normally occurred prior to recessions. FRED data link |
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| Yield Curve Spread, August Monthly Average | ||||||
 July monthly avg: 1.18Importance: Research has shown that a steeper curve (higher number) indicates stronger economic growth. Historically, the yield curve spread turns negative prior to recessions and credit crunches, with a lag of approximately one year. The spread shown here is the difference between 10-year Treasury notes and 3-month Treasury bills. U.S. Treasury source link |
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| Small Business Optimism - August (updated 9/12) | ||||||
 August 3-month EMA: 105.0Importance: The National Federation of Independent Businesses (NFIB) publishes the monthly index of small business sentiment. This index has generally signaled overall economic conditions. The optimism reading is taken from a monthly survey of small business owners. NFIB source link |
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| Real Corporate Profits, 2Q 2017, 1st Estimate (update 8/30) | ||||||
 2Q reported: $1.657 trillion (chained to current dollars)Importance: Corporate profits are a main driver of economic activity. Adjustments for IVA and CCAdj provide a better measure of production profits. Historically, prior to recessions, nonfinancial profits fall to levels equal to or below previous business cycles (see dashed lines). BEA source link |
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| Real Net Domestic Private Investment, 2Q 2017 (updated 8/30) | ||||||
 2Q reported: $454.1 billion (chained to current dollars)Importance: Increases or decreases in net private investment indicate changes in the future productive capacity of the U.S. BEA source link |
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| Vehicle Sales - August (updated 9/19) | ||||||
 August 3-month EMA: 16.7 million (annlzd)Importance: Vehicle sales provide another measure of consumer confidence. Due to the volatility of vehicle sales, the three-month exponential moving average is a better measure for tracking this indicator. FRED data link |
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| Existing Home Sales - August (released 9/20) |
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 August 3-month EMA: 5.424 millionImportance: Existing home sales are a complementary indicator to new building permits. Looking at both measures together provides a more comperhensive view of the housing market. Due to wide data variations from month to month, the three-month EMA is the better measure to follow. NAR source link |
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| Big Three Economic Measures: | ||||||
| GDP, inflation, and employment are used to gauge overall economic conditions. | ||||||
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| Real GDP, 2Q 2017, 2nd estimate (released 8/30) | ||||||
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| Real GDP per capita, 2Q 2017, based on 2nd estimate (released 8/30) | ||||||
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Bureau of Economic Analysis release... |
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| Consumer Price Index - August (released 9/14) | ||||||
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Department of Labor release... |
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| Department of Labor employment - August (released 9/1) | ||||||
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Department of Labor release... |
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| Other Key Economic Indicators: | ||||||
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| Real disposable personal income per capita - June (released 8/1) | ||||||
 Importance: The U.S. Bureau of Economic Analysis defines disposable personal income as "personal income less personal current taxes. It is income available … for spending or saving." Disposable income that is spent is referred to as personal consumption expenditures (PCE). Disposable income that is not spent is savings. Changes in PCE signal the confidence that consumers have in the economy, both now and in the near future.BEA source link |
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| Industrial production and capacity utilization - August (released 9/15) | ||||||
 August IP 3-month EMA = 105.0August CU 3-month EMA = 76.4 Importance: Industrial production and capacity are considered to be coincident indicators because they reflect current economic conditions. Capacity utilization below 80% indicates there is slack in the economy. Manufacturing, mining, and utilities account for approximately 16 percent of GDP. Fed source link |
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| Chicago Fed National Activity Index - July (released 8/21) | ||||||
 July 3-month EMA: -0.07Importance: The CFNAI gauges "overall economic activity and related inflationary pressures." Positive values indicate above-average growth and negative values indicate below-average growth. A three-month moving average of -0.70 generally indicates a recession has started. Fed source link |
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| Credit Managers' Index - August (updated 9/8) | ||||||
 August 3-month EMA: 55.0Importance: The National Association of Credit Managers (NACM) describes the CMI as an "accurate, predictive bench-marking tool." Readings above 50 indicate credit is expanding. NACM source link |
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| Real average hourly earnings - August (released 9/14) | ||||||
 August reported: $26.39 (chained to current dollars)Importance: Gains in real hourly earnings indicate that wage increases exceed inflation. Higher real wages encourage consumer spending, spurring economic growth. BLS source link |
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| ISM manufacturing (PMI®) - August (released 9/1) | ||||||
 August 3-month EMA: 57.6Importance: Manufacturing continues to be a significant contributor to economic growth. Readings above 50 indicate this sector is expanding. Readings below 43.2 coincide with overall economic slowdowns. ISM source link |
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| Real durable goods new orders - July Full Report (released 9/5) | ||||||
 July 3-month EMA: $233.6 millionImportance: Durable goods new orders are often referred to as a leading indicator of economic activity. However, historical trends show that it often lags behind other measures. In addition, its volatility diminishes its usefulness. U.S. Census source link |
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| Productivity, 2Q, 2017: (released 9/6) | ||||||
 2Q Nonfarm: 108.12Q Manufacturing: 119.9 Importance: When productivity increases, the same amount of resources can produce more goods or services. Higher productivity leads to a higher standard of living. BLS source link |
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| Other Measures: | ||||||
Fed Outlays % GDP Interest on Debt % GDP  Jobs  Participation Rate  |
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| The problem with putting two and two together is that sometimes you get four, and sometimes you get twenty-two.” ― Nick Charles, The Thin Man | ||||||
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