U.S. Economic Indicators – January 2014
U.S. economic indicators improved considerably. Consumer confidence grew in December and consumption indicators improved in November, though real disposable income growth slowed down to a meager 0.6% YoY. Further, business sentiment improved again and production indicators were largely good, with new orders for capital goods jumping up by 8.8% in November and speed of deliveries index reading 54.7 in December. Employment indicators were rather positive: while the weekly new unemployment insurance applications fell by 10.6%, and the unemployment rate dropped to 6.7%, the labor participation rate fell again. The real estate indicators showed signs of improvement as the home prices increased, the number of new building permits increased, and the months’ inventory of new houses fell slightly to 4.3 months in November.
Other highlights include:
- The S&P 500 index gained 3.3% in the last 30 days.
- The consumer price index was at low level of 1.2% YoY in November. The inflation rate was 0.03% on month-on-month basis. Growth rate of cash deposits and cash-like assets dropped to 6.1%, below the long term average.