Economics Update

The lede has to be the ADP report showing that private employers cut 10,000 jobs in August.

Obviously, we will get the official numbers from the Feds on Friday.

On the other hand, manufacturing grew more than expected in August.

It’s kind of a mixed bag news day, with consumer spending increasing, but real incomes fell for the first time in over 6 months and the Conference Board’s consumer confidence beat estimates.

I’m not sure exactly what they are spending money on though, because car sales had the weakest August in 27 years, which would imply an aversion to big ticket purchases.

In real estate, the Case-Shiller home price index rose in June, though that’s probably more a result of the now-expired tax credit than anything else, mortgage applications rose slightly, though, unsurprisingly, more so for refinance than it did for home purchases, and construction spending was significantly lower than estimates.

In the “these are real lives that are being f%$#ed with” category, bankruptcy filings fell in August, though they still remain at a near 5 years high.

Finally, Canada’s economy slowed significantly in the 2nd quarter.

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