Fed survey finds modest gains in the U.S. economy in February
Reports on consumer spending and auto sales were mixed, while overall manufacturing showed moderate gains despite supply-side constraints, according to the Fed survey.
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U.S. consumers boost spending 2.4% as income jumps
Friday’s report from the Commerce Department also showed that personal incomes, which provide the fuel for spending, jumped 10% last month, boosted by cash payments most Americans received from the government.
Fourth quarter economy better than originally thought, revised up to 4.1%
The 4.1% gain in the gross domestic product—the broadest measure of economic health—is a slight upward revision from 4% growth in the first estimate released a month ago, the Commerce Department reported Thursday.
U.S. jobless claims fall to three-month low of 730K
Last week’s decline in applications was broad-based, with 36 states (including Indiana) and the District of Columbia reporting fewer people seeking unemployment benefits. That suggests that employers might be cutting fewer jobs.
Fed’s Powell: Recovery incomplete, high inflation unlikely
Federal Reserve Chair Jerome Powell’s comments were in contrast to the increasing optimism among many analysts that the economy will grow rapidly later this year. That outlook has also raised concerns, though, about a potential surge in inflation.
Federal Reserve sees modest pickup in hiring this month
The Federal Reserve says there’s evidence that hiring has picked up in recent weeks, although the job market remains badly damaged by the pandemic.
Bohanon & Curott: Congress should update immigration rules while securing border
Congress could refine, update and modify current immigration rules to allow for clearer paths to legal immigration while simultaneously securing our borders.
Entrepreneurship activity in Indiana is sluggish, Brookings report finds
As a result, the report argues, the state is not as well-positioned as it might be to rebound from economic downturns.
One of 10 in United States might have to switch occupations after pandemic
Women, minorities, the young and the less educated will probably be the hardest hit by what consultant firm McKinsey & Co. foresees in a new report as an unprecedented hollowing out of low-wage work in retail, hospitality and other industries.
Indiana should see some economic recovery this year, economist says
Indiana’s economy should start to recover this year from the damage of COVID-19, but the economy likely won’t fully rebound until late 2022 or early 2023, a Ball State University economist says.
U.S. consumer sentiment unexpectedly falls to a six-month low
Elevated unemployment, limited social activity because of COVID-19 and a slow pace of vaccinations are depressing sentiment
Autoworkers will face uncertain future in era of electric cars
For workers at GM and other automakers, the future could be perilous. The more environmentally focused plants of the future will need significantly fewer workers, mainly because electric vehicles contain 30% to 40% fewer moving parts than petroleum-run vehicles.
New report outlines challenges, solutions for Indiana’s economy
The Brookings Institution report, “Indiana GPS: Strategies for Resilience,” identifies job growth, wages and technology as areas for improvement in the state’s economy.
U.S. consumer prices up 0.3% in January, led by energy spike
Energy costs jumped 3.5%, led by a 7.4% surge in gasoline. Even with the spike, gasoline prices are 8.7% below where they were a year ago.
U.S. employers add just 49K jobs as unemployment falls to 6.3%
The January figures from the Labor Department reflect a faltering job market, slowed by a pandemic that is still causing consumers to avoid traveling, shopping, dining out, attending entertainment venues and engaging in other forms of face-to-face contact.
U.S. service sector operates at highest level in almost two years
Last month’s gain came as a surprise to economists who had been looking for a slight decline given that the country was battling a severe resurgence of virus cases in January.
U.S. factories showed growth in January, but at slower pace
The Institute for Supply Management’s survey of businesses showed that 16 of 18 manufacturing industries showed growth in January. The contracting industries were printing and petroleum.
Congressional Budget Office projects 4.6% growth in 2021
The CBO cautioned that its projections are highly uncertain, in large part because of the pace of the vaccination and the risk of new variations of the coronavirus.
U.S. employment costs rose modestly in fourth quarter
Wages and benefits for U.S. workers rose in the last quarter of the year, putting all of 2020 in somewhat of a normal range as the pandemic continued to rankle the economy.
Biden announces $1.9T pandemic rescue plan
President-elect Joe Biden unveiled a stimulus plan Thursday intended to speed up vaccines and pump out financial help to those struggling with the pandemic’s prolonged economic fallout.