Personal Income Rose in June to 0.4%
Personal income rose in June 0.4 percent and revisions to previously reported data show incomes rising a bit more rapidly, additionally, the saving rate was found to be double previous estimates and inflation came in a touch below forecasts. This data paints a much brighter economic picture. Wages rose 4.4 percent during the 2nd quarter and were even stronger in the first quarter, at 5.8 percent, led by double digit growth in wages in the manufacturing, mining and construction sectors.
Robust Expansion in Texas Continued
The Federal Reserve Bank of Dallas released its July 2018 Texas Manufacturing Outlook Survey and reports the robust expansion in Texas factory activity continued in July, according to executives responding to the survey. The production index, a key measure of state manufacturing conditions rose 6 points to 29.4, signaling an acceleration in output growth. Other indexes of manufacturing activity also indicated continued solid expansion in July.
Chicago Business Barometer Rose to Highest Level Since January
The Chicago Business Barometer rose to its highest level since January, in the month of July. The swifter pace of operations was up for the fourth straight month with all but one of the barometer components rising. Both the New Orders and Production indexes recorded six-month highs. The Order Backlogs indicator capped a third straight rise by hitting a nine-month high. Lead times on key materials remained significantly elevated and continue to impair firms’ productive capacity.
US Drill Rigs Running Stepped Up Last Week
The number of drill rigs running in the USA stepped up by two last week to 1048, led by Pennsylvania. Meanwhile Canadian drillers added 12 rigs, to 223 compared with the previous week.
The Conference Board Consumer Confidence Index increased marginally in July following a modest decline in June.
Caterpillar Raised Its Profit Outlook
Caterpillar raised its profit outlook, predicting higher prices and strong sales will cover increased material costs tied to tariffs (and I would add: increased DEMAND).
Midwest Economy Index Decreased in June
The Midwest Economy Index (MEI) decreased to +0.40 in June from +0.58 in May. Contributions to the June MEI from three of the four broad sectors of non-farm business activity and four of the five Seventh Federal Reserve District states decreased from May. The relative MEI rose to +0.01 in June from -0.37 in May. Contributions to the June relative MEI from three of the four sectors and all five states increased from May.
What do the index numbers mean?
A zero value for the MEI has been associated with the Midwest economy expanding at its historical trend (average) rate of growth; positive values with above-average growth (in standard deviation units); and negative values with below-average growth.
A zero value for the relative MEI has been associated with the Midwest economy growing at a rate historically consistent with the growth of the national economy; positive values with above-average relative growth (in standard deviation units); and negative values with below-average relative growth.
US Raw Steel Production Climbed
US raw steel production continued its climb last week, rising 1.2% as mills operated at an ACUR of 78.3%. in the corresponding week last year mills operated at an ACUR of 74.3%. Thus far this year mills have produced prox 53,000,000 tons compared to the prox 52,000,000 tons produced in the like period last year.
Strong Labor Market Boosts Wages
US workers received their biggest pay increases in nearly a decade over the 12 months through June, a sign the strong labor market is boosting wages as employers compete for scarcer workers.
The Labor Departments employment-cost index rose 2.8% in the year to June, the government said Tuesday. Wages and salaries, which account for about 70% of all employment costs, also rose 2.8% from a year earlier, the strongest gain for both measures since September 2008.” WSJ
This is clearly a result of Trump Administration policies to Make America Great Again! You cannot argue with the facts. Silly as it may sound, the left is trying to credit Obama for this economy and that is just laughable.
Economic Activity in Manufacturing Expanded in July
The Institute for Supply Management released its July 2018 Manufacturing ISM Report on Business and reports economic activity in the manufacturing sector expanded in July and the overall economy grew for the 111th consecutive month, say the nation’s supply executives in this latest report.
The report was issued Wednesday by Timothy R. Fiore, CPSM, CPM, Chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee.
The July PMI registered 58.1 percent, a decrease of 2.1 percentage points from the June reading of 60.2 percent. The New Orders Index decreased from the June reading, the Production Index also decreased compared to the June reading while the Employment Index increased from the June reading.
Comments from the panel reflect continued expanding business strength. Demand remains strong with the New Orders Index at 60% or above for the 15th straight month and the Customers Inventories Index remaining low.”
Proposed Tariffs of 25% on $200 Billion of Chinese Imports
Trump holds the line on trade with China by announcing on Wednesday it is more than doubling its proposed tariffs on $200 billion of Chinese import to 25%, industry sources said. WSJ
They WILL come to the table and President Trump will WIN his battle to level the playing field regarding world trade. Huffing and puffing as everyone is, in the end, they will all capitulate or drown in their own misery.
Feds Maintain Rate
The Federal Reserve, despite a strong assessment of the economy featuring a labor market that has “continued to strengthen” and economic activity that “has been rising at a strong rate,” maintained the Fed Funds rate in the 1.75% -2.00% range, choosing to keep monetary policy accommodative.
We can still expect 2 more rate hikes this calendar year, in my view.
Infrastructure X (Keystone & Dakota pipelines) Regulation Reform XX 1 in 2 out
Individual Tax Reform XX Entitlement Reform
Business Tax Reform XX Education Reform X
Healthcare Reform Veterans Administration Reform X
Rebuild our Military X Trade Reform X
Secure our Borders (The Wall) XX Lead the world from the front XX
Help for the poor XX Drain the swamp X as we speak
Peace through unmatchable strength Support Israel X
Destroy ISIS XX Extreme Vetting XX
Conservative Supreme Court nominees XX American Jobs XX
I will track these campaign promises and will check them off as each is accomplished adding those I have missed as they become apparent. This is quite an agenda and will be difficult to achieve all in one term, but I believe the American people are behind him and know these things need to be done. Now, if he can get our legislators to support him instead of fighting him….
“MAKE AMERICA GREAT AGAIN”
Have a great weekend…. God bless America!
Buy American made products whenever you can, it’s good for you, good for your friends and neighbors and good for our country.
If you are hiring…try to hire a veteran…. they are loyal, disciplined, hardworking…and they deserve our support.
By the way, if you wish to comment on my rants or offer any other insights you may have, you are encouraged to email me.
TEDDY ROOSEVELT ON IMMIGRANTS IN AMERICA…1907
In the first place, we should insist that if the immigrant who comes here in good faith becomes an American and assimilates himself to us, he shall be treated on an exact equality with everyone else for it is an outrage to discriminate against any such man because of creed, or birthplace, or origin. But this is predicated upon the person’s becoming in every facet an American and nothing but an American. There can be no divided allegiance here. Any man who says he is an American, but something else also, isn’t an American at all. We have room for but one flag, the American flag…We have room for but one language here and that is the English language…and we have room for but one sole loyalty and that is a loyalty to the American people.”