Monday Cup of Coffee

Monday Morning Coffee July 16

Recently released data revealed that the disparity between sales of previously owned homes and new homes continued in May. While contracts signed to purchase previously owned homes fell a little from April and were lower than a year ago, contracts signed to purchase new homes jumped 5% from April and were 14% higher than a…

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Monday Morning Coffee July 9th

Since consumer spending accounts for roughly 70% of economic activity, the Retail Sales report is closely watched each month. Following the hurricanes, retail sales surged last fall, and the trend was expected to continue. They then turned negative for three straight months, leading to questions about the strength of the consumer earlier this year. However,…

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Monday Morning Coffee July 2

Against a consensus forecast of 190,000, the economy added 223,000 jobs in May. In addition, upward revisions added 15,000 jobs to the results for prior months. The economy has gained an average of a very healthy 207,000 jobs per month so far this year. The unemployment rate declined from 3.9% to 3.8%, the lowest level…

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Monday Morning Coffee June 11

Recent data on home sales was encouraging. Sales of previously owned homes rose 1% from and were close to the level seen a year ago. Sales of newly built homes increased 4% and were 9% higher than a year ago. Both readings were stronger than expected. The difference in performance likely was due to the…

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Monday Morning Coffee May 21

The economy has added an average of 202,000 jobs per month during the first three months of 2018. The unemployment rate was flat at 4.1%. Average hourly earnings, an indicator of wage growth, slightly exceeded expectations. They were 2.7% higher than a year ago, up from an annual rate of 2.6% last month. Strong employment…

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Monday Morning Coffee May 14

Since consumer spending accounts for roughly 70% of economic activity, investors keep a close eye on the retail sales data. Following strong readings during the fall, retail sales posted unexpected declines for three straight months.  However, the data recently released for March showed that they increased a healthy 0.6% from February, breaking the unwelcome trend,…

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