According to the ADP Employer Services Report, the private sector added 201,000 new jobs in March, basically in-line with 203,000 new jobs that analysts had been expecting to see.

February's figures were revised downwards to 208,000 from a previously estimated 216,000 new jobs.

March's employment gains bring the four-month average of new jobs to 211,000, more than enough to keep the labor track on path. Analysts estimate that the economy needs to add 125,000 new jobs each month in order to keep up with population growth, so any jobs over that figure result in a lower unemployment figures.

Continue reading Labor Market Continues to Show Signs of Improvement

Labor Market Continues to Show Signs of Improvement originally appeared on BloggingStocks on Wed, 30 Mar 2011 12:30:00 EST. Please see our terms for use of feeds.

Over the past several weeks, we've seen a sharp run up in commodities, including precious metals, grains, oil and "soft" commodities like cotton, sugar and coffee.

Nevertheless, the Labor Department reported that consumer prices rose only 0.2%, mainly from higher energy costs. The so-called core rate was unchanged for the third straight month, as reported in the Wall Street Journal.

Continue reading How Can U.S. Inflation Flatline When Gas at the Pump Is Up 4.6%?

How Can U.S. Inflation Flatline When Gas at the Pump Is Up 4.6%? originally appeared on BloggingStocks on Thu, 18 Nov 2010 09:30:00 EST. Please see our terms for use of feeds.

The Labor Department reported that consumer prices rose 0.3% in August. The core Consumer Price Index (CPI) was flat.

These number suggest that inflation is subdued and does not pose an immediate threat to the economy. Now, analysts are speculating about Federal Reserve policies going forward.

The report on consumer prices follows a 0.4% rise in producer prices, after a 0.2% rise in July, as reported in the New York Times.

Continue reading Consumer Prices Flat in August; Inflation Is Subdued

Consumer Prices Flat in August; Inflation Is Subdued originally appeared on BloggingStocks on Fri, 17 Sep 2010 12:30:00 EST. Please see our terms for use of feeds.

Retailers don't like competition. As it is, they get enough of it from each other in the pursuit of razor-thin margins. It's standard practice to squeeze manufacturers for lower prices and more concessions as part of this battle.

For years, it's also been the norm for retailers to push back on manufacturers' direct-to-consumer models, as it gives consumers one less reason to enter the store, results in smaller basket sizes and greater pressure on wallet share. When a consumer product giant decides to bypass the retailers, eyebrows rise across the consumer business industry, with manufacturers thinking about new revenue possibilities while retailers worry that other product companies will follow.

Continue reading P&G Tinkers with Direct-to-Consumer Model

P&G Tinkers with Direct-to-Consumer Model originally appeared on BloggingStocks on Tue, 19 Jan 2010 12:00:00 EST. Please see our terms for use of feeds.

You don't need to read the numbers to know that you are paying more to gas up your vehicle. Gasoline prices have risen about 14% last month. The Labor Department reported that consumer prices rose 0.4% in November. The core rate that excludes food and energy was flat. The core rate is meaningless because food and energy are the key costs that affect all Americans.

The Commerce Department reported that new home construction rose 8.9% in November to a seasonally adjusted rate of 574,000 units. That was stronger than economists had predicted. Applications for new building permits were also up 6.0% to 584,000.

Continue reading Energy costs push consumer prices higher

Energy costs push consumer prices higher originally appeared on BloggingStocks on Wed, 16 Dec 2009 11:10:00 EST. Please see our terms for use of feeds.

The price at the cash register ticked higher in October, though it was driven by the cost at the pump and on the lot.

Energy prices and new car sales (the highest in 28 years) pushed consumer prices upward in October, they're still cheaper than they were a year earlier. The Labor Department reports that consumer prices edged up 0.3% last month, a tad higher than the 0.2% anticipated. Take food and energy out of the equation, and inflation rose 0.2%, again ahead of the 0.1% that analysts expected.

Continue reading Energy, auto sales push consumer prices higher in October

Energy, auto sales push consumer prices higher in October originally appeared on BloggingStocks on Thu, 19 Nov 2009 13:00:00 EST. Please see our terms for use of feeds.

Core CPI also rose .2% The core index excludes food and energy.

There were price increases in used cars and trucks, apparel and medical care. Energy prices climbed .8% in September.

Continue reading Consumer prices rise in September

Consumer prices rise in September originally appeared on BloggingStocks on Thu, 15 Oct 2009 15:00:00 EST. Please see our terms for use of feeds.

This morning, the Labor Department announced that its consumer price index rose less than expected during May. This data is considered the latest evidence that the recession is continuing, keeping inflation in check. According to the Labor Department, the index increased a seasonally adjusted 0.1% in May, falling short of expectations for a 0.3% rise. Taking food and energy costs out of the equation, core prices increased 0.1%, matching expectations.

The recession is forcing prices lower, with the unemployment rate advancing to a 25-year high, and factories are operating at record-low levels. Some analysts suggest that we could see a period of deflation -- which is a destabilizing period of extended declines. Although lower prices may seem good, deflation could lead to consumers delaying purchases, which could then lead to drops in production and in wage cuts.

Continue reading Consumer prices rise less then predicted in May

Consumer prices rise less then predicted in May originally appeared on BloggingStocks on Wed, 17 Jun 2009 13:10:00 EST. Please see our terms for use of feeds.

If people are going to be broke or out of work, at least the cost of buying goods and services should drop, even if no one can afford them. To some degree, that is what a recession is all about. Cheap stuff can't be sold.

According to Bloomberg, "The cost of living in the U.S. probably fell in November by the most in six decades." The news service reports that consumer prices probably dropped 1.2%.

While it may appear cruel that people cannot buy things when they finally become "affordable," it may be one of the maps out of the recession. If prices keep dropping and housing and employment bottom, the consumer could start spending again. That spending could get aggressive.

The consumer has dragged the country into this recession. Consumer spending is supposed to be about 60% of the U.S. GDP.

Now, the consumer has to spend us out of the downturn. Falling prices for the things he needs, whether that is gas, clothing, or a new car, may just do the trick. Even the pinched can afford goods that have moved ludicrously low.

Douglas A. McIntyre is an editor at 247wallst.com.

Cost of living still falling? originally appeared on BloggingStocks on Sun, 14 Dec 2008 14:40:00 EST. Please see our terms for use of feeds.

Continue reading Mobius: Fed should eventually cut rates to 1% to boost U.S. economy

Mobius: Fed should eventually cut rates to 1% to boost U.S. economy originally appeared on BloggingStocks on Tue, 05 Aug 2008 12:00:00 EST. Please see our terms for use of feeds.

It's a European anti-inflation campaign that will require boldness, creativity, and patience.

That was how one economist described a potential monetary policy tack by the European Central Bank (ECB) for the quarters ahead.

London-based economist Mark Chandler told BloggingStocks that typically, a central bank will increase interest rates to fight inflation. Paradoxically, he's not recommending that the ECB do that now.

"It is a bit of a paradox, but if the ECB raises interest rates it may have the effect of, in fact, increasing inflation," Chandler said. (Euro-zone inflation is presently running at about a 3.7% annualized rate -- well above the ECB 2.0% limit, according to Eurostat.)

Contain commodities prices, contain inflation

Here's how an interest rate hike may hurt inflation's cause: a rate hike would put the euro, once again, in a superior investment position versus the U.S. dollar, causing the already-weak dollar to fall more, Chandler said. As the dollar continues to fall, commodity prices -- including oil -- will continue to rise, as investors seek to preserve purchasing power of the decreased value of dollar-denominated commodities, and as a general inflation hedge.

Continue reading Best ECB inflation-fighting strategy may be ... no interest rate increase

Best ECB inflation-fighting strategy may be ... no interest rate increase originally appeared on BloggingStocks on Sat, 28 Jun 2008 15:10:00 EST. Please see our terms for use of feeds.

Continue reading Economist: March OPEC supply cut would be 'disruptive, scandalous'

Economist: March OPEC supply cut would be 'disruptive, scandalous' originally appeared on BloggingStocks on Mon, 25 Feb 2008 17:46:00 EST. Please see our terms for use of feeds.

Continue reading China says it will keep monetary policy tight in 2008

China says it will keep monetary policy tight in 2008 originally appeared on BloggingStocks on Mon, 25 Feb 2008 14:35:00 EST. Please see our terms for use of feeds.

December CPI rises 0.3%, but core rises 0.2%, in-line with estimate originally appeared on BloggingStocks on Wed, 16 Jan 2008 09:22:00 EST. Please see our terms for use of feeds.

Continue reading Japanese consumer prices increase

Japanese consumer prices increase originally appeared on BloggingStocks on Fri, 28 Dec 2007 14:41:00 EST. Please see our terms for use of feeds.

As I watch the retreating of prices on a selection of consumer goods I wonder where this is all going. Housing prices have dropped nationwide. Consumer electronics are sliding downward. The "big three", Ford Motor Company (NYSE: F), Daimler Chrysler (NYSE: DCX) and General Motors (NYSE: GM) are reducing sticker shock to the customer. Sure, these are nice things relative to the bottom line as consumers, but is this the signal of hard times to come? If I was seeing an overall increase of incomes at the same time as these price declines I'd be more excited about the "recession". Although the government says we're earning more, at ground level I just don't see it.

No, what I think is happening is the rising of a monster that I have feared for quite some time. We have lost such a significant share of the world's manufacturing output relative to our population that our economy is adjusting itself to compensate for the losses of those well-paying jobs. Don't let Washington fool you. Just because they say employment numbers are good doesn't mean you can sleep better tonight. When it takes three employees in the warehouse at a retail outlet like Best Buy (NYSE: BBY) to earn the same income as one dude used to earn building cars or vacuum cleaners, that's a sad state of affairs. Those three warehouse workers won't be buying flat screen TVs. The auto worker could have bought a couple of them.

Will our government wake up and send word to the World Trade Organization that we're starting to get a bit edgy over here? Maybe I'm wrong, but I think the WTO is a major obstacle to our success. They hold us to marketing price structures that are unrealistic by instituting tariffs and controls that strangle real free trade. At the same time, they refuse to have a hand in requiring the implementation of solid requirements regarding the compensation and treatment of the world's work force. Add in the inability of our own governments, both federal and state, to control spending and the continued upward spiral of out-of-control taxation and you have an economy that is being held hostage to the whims of a limited and scary percentage of power mongers. What can we as wage earners and consumers do about all this?

I'm open for suggestions.

Should there be a deflation index? originally appeared on BloggingStocks on Tue, 19 Dec 2006 11:05:00 EST. Please see our terms for use of feeds.