SNAPSHOT: US economy
According to the US Bureau of Labor Statistics, 120,000 jobs were added in America in February. Unemployment was unchanged at 8.2% €" higher than Germany, Canada, Australia and New Zealand and only 0.1% lower than Britain.
The figures coming out of the US suggest that job growth in retail is down. Yet according to US Commerce Dept figures, February saw the biggest leap in retail sales in five months. This included 1.6% for cars, 3.3% for petrol and 1.8% for clothing.
US factory production rose by 0.3% in February. Yet overall industrial output was flat with declines in mining and car manufacturing. This seems to suggest that most cars which Americans are buying are imported. This seems to be in line with America's growing trade deficit, which hit $52.6bn in January.
Real incomes are not growing significantly yet 70% of US growth is being driven by private consumption. While jobs are being added in healthcare, education, federal government, food and beverages, it appears to be declining or static elsewhere.
The number of long-term unemployed remains unchanged at 5.3 million people €" although this group has declined by 1.4 million since April last year. The civilian labour force participation (63.8%) and the employment-population ratio (58.5%) were unchanged in March.
In manufacturing, the gains for employment were in motor vehicles and parts (12,000); machinery (7,000); fabricated metals (5,000) and paper manufacturing (3,000). Food services and drinking added 37,000 jobs (the same as manufacturing overall), and growth of 563,000 since February 2010.
Healthcare grew by 26,000, financial activities by 15,000 (most of which was credit mediation at 11,000) and professional and business services by 31,000. Services to buildings and dwellings increased by 23,000 and temporary help services by 55,000. Retail saw a 34,000 drop in employment despite a rise in sales, with 32,000 jobs lost in general merchandise stores.
The average working week fell by 0.1 hour in March to 34.5 hours; the manufacturing workweek fell by 0.3 hour to 40.7 hours and production and supervision remained unchanged at 33.8 hours. There was unchanged employment for mining, construction, wholesale trade, transportation, warehousing and information.
Average hourly earnings in the private sector rose by 5 cents or 0.2% to $23.39, with production and supervisory earnings rising by 3 cents or 0.2% to $19.68.
Among the largest employment sectors are government (21.99 million); education and healthcare (20.2 million); professional and business services (17.78 million); retail (14.69 million) and leisure and hospitality (13.58 million).
Manufacturing employs 11.92 million; finance 7.72 million; construction 5.5 million; transport and warehousing 4.35 million and information 2.6 million.
While weekly earnings are up in leisure and hospitality (79 cents); wholesale trade ($3.54) and professional and business services ($4.31), they are down in manufacturing ($6.76); construction ($5.35) and retail ($1.6).
It would be a shame if optimism about US economic growth was misplaced. As we reported last week, it appears as though some US consumers are going back to the pre-recession spending habits of credit card debt.
According to CardHub.com's Q2 2011 Credit Card Debt Study, US consumers accumulated $18.4 billion in credit card debt in the second quarter of 2011. That is a 66% rise on the same quarter a year before and 368% more than in the second quarter of 2009.
€There is no doubt in my mind that a lot of consumers are reverting back to pre-recession habits and that this is why we are witnessing such a dramatic increase in credit card debt (net of charge-offs). Anyone whose income was tied to the housing boom €" either directly or indirectly €" should realize that those years aren't coming back unless we find ourselves in another bubble,€ warned Odysseas Papadimitriou, CEO of CardHub.com.
The figures coming out of the US suggest that job growth in retail is down. Yet according to US Commerce Dept figures, February saw the biggest leap in retail sales in five months. This included 1.6% for cars, 3.3% for petrol and 1.8% for clothing.
US factory production rose by 0.3% in February. Yet overall industrial output was flat with declines in mining and car manufacturing. This seems to suggest that most cars which Americans are buying are imported. This seems to be in line with America's growing trade deficit, which hit $52.6bn in January.
Real incomes are not growing significantly yet 70% of US growth is being driven by private consumption. While jobs are being added in healthcare, education, federal government, food and beverages, it appears to be declining or static elsewhere.
The number of long-term unemployed remains unchanged at 5.3 million people €" although this group has declined by 1.4 million since April last year. The civilian labour force participation (63.8%) and the employment-population ratio (58.5%) were unchanged in March.
In manufacturing, the gains for employment were in motor vehicles and parts (12,000); machinery (7,000); fabricated metals (5,000) and paper manufacturing (3,000). Food services and drinking added 37,000 jobs (the same as manufacturing overall), and growth of 563,000 since February 2010.
Healthcare grew by 26,000, financial activities by 15,000 (most of which was credit mediation at 11,000) and professional and business services by 31,000. Services to buildings and dwellings increased by 23,000 and temporary help services by 55,000. Retail saw a 34,000 drop in employment despite a rise in sales, with 32,000 jobs lost in general merchandise stores.
The average working week fell by 0.1 hour in March to 34.5 hours; the manufacturing workweek fell by 0.3 hour to 40.7 hours and production and supervision remained unchanged at 33.8 hours. There was unchanged employment for mining, construction, wholesale trade, transportation, warehousing and information.
Average hourly earnings in the private sector rose by 5 cents or 0.2% to $23.39, with production and supervisory earnings rising by 3 cents or 0.2% to $19.68.
Among the largest employment sectors are government (21.99 million); education and healthcare (20.2 million); professional and business services (17.78 million); retail (14.69 million) and leisure and hospitality (13.58 million).
Manufacturing employs 11.92 million; finance 7.72 million; construction 5.5 million; transport and warehousing 4.35 million and information 2.6 million.
While weekly earnings are up in leisure and hospitality (79 cents); wholesale trade ($3.54) and professional and business services ($4.31), they are down in manufacturing ($6.76); construction ($5.35) and retail ($1.6).
It would be a shame if optimism about US economic growth was misplaced. As we reported last week, it appears as though some US consumers are going back to the pre-recession spending habits of credit card debt.
According to CardHub.com's Q2 2011 Credit Card Debt Study, US consumers accumulated $18.4 billion in credit card debt in the second quarter of 2011. That is a 66% rise on the same quarter a year before and 368% more than in the second quarter of 2009.
€There is no doubt in my mind that a lot of consumers are reverting back to pre-recession habits and that this is why we are witnessing such a dramatic increase in credit card debt (net of charge-offs). Anyone whose income was tied to the housing boom €" either directly or indirectly €" should realize that those years aren't coming back unless we find ourselves in another bubble,€ warned Odysseas Papadimitriou, CEO of CardHub.com.
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