Companies cut the fewest number of jobs during October than they had in more than a year, according to a private report released Wednesday.
Some 203,000 workers were fired or laid off last month, the smallest number since July 2008, data from payroll processing firm ADP found. In September, 227,000 jobs were lost, ADP said.
The greatest losses were in goods-producing jobs, which declined by 117,000. That number included 65,000 fewer jobs in manufacturing and 51,000 in construction. Jobs producing services fell by 86,000. read more
Manufacturing in the U.S. grew faster than expected in October, the Institute for Supply Management reported Monday.
The group’s factory index rose to a three-year high of 55.7, which surpassed analysts’ predictions of 53. In September, the index figure was 52.6.
The upswing resulted from companies cutting inventories over the first six months of the year and falling stockpiles in the last quarter. read more
A gauge of market uncertainty rose more than 20 percent on Friday to levels not seen since last July.
The Volatility Index, or VIX, of the Chicago Board Options Exchange was up 27 percent to 31.49 about 30 minutes before the end of trading on the New York exchanges. The index measures market volatility, and often rises as stocks decline.
The gauge fell 11 percent on Thursday as the Standard and Poor’s Index rose more than 2 percent and the Dow Jones Industrial Average soared 200 points.
The VIX dipped to its lowest point of the year on Oct. 22, when it closed at 20.69. It hit a record of 80.86 in November following the collapse of Lehman Brothers Holdings. read more
Consumer spending fell 0.5 percent in September, a dramatic drop that marked the first decline in five months, the Commerce Department reported Friday.
It was the most severe decline since December 2008.
In August, personal income and disposable personal income were essentially unchanged, with both falling less than 0.1 percent, the department reported. Adjusted for inflation, disposable income decreased 0.1 percent after dropping 0.2 percent in August. After rising 1 percent in August, real personal consumption expenditures decreased 0.6 percent. read more
The United States economy grew by an annual rate of 3.5 percent, the first good news in the gross domestic product in a year.
The positive data for the three months ending in September was reported Thursday by the Commerce Department. The previous two quarters had seen contractions at annual rates of 6.4 percent and 0.7 percent.
The index that measures prices paid by consumers increase 1.6 percent in the third quarter, the department said, while the previous period saw an increase of 0.5 percent.
The inflation index, excluding food and energy prices, rose 0.5 percent; the index edged up 0.8 percent in the second quarter. read more
U.S. Treasury Secretary Timothy Geithner testified before the House Financial Services Committee on Thursday, pushing for several economic reforms including a limit on the emergency powers of the Federal Reserve and the FDIC.
Congress has “made important progress over the past several weeks,” Geithner said, but now the country must move away from emergency regulations.
“During the recent financial crisis, in order to preserve the stability of the financial system, protect the savings of Americans and prevent greater economic fallout, the government was forced to step in and stand behind almost all of these firms. That cannot happen again, Geithner warned. read more
The U.S. households received several pieces of negative news this week as confidence sagged and new home sales slipped. However, a better than expected third quarter Gross Domestic Product report grabbed all the headlines on Thursday.
Earlier in the week, The Conference Board reported a decline in consumer confidence to 47.7 for October. That result is down from a 53.4 reading in September and short of economist estimates for a marginal increase to 53.5.
Overall confidence was hurt by the present situation index, which fell from 23 to 20.7, marking the lowest level in 26 years. The expectations portion of the index also dropped, falling from 73.7 to 65.7.
Consumers also grew more pessimistic about the U.S. job market, as those who claimed jobs were “hard to get” rose to 49.6 percent in October from 47 percent the prior month. read more
U.S. consumers are feeling more positive about the economy, according to a survey by the University of Michigan and Reuters released last month.
Consumer sentiment rose to 73.5, a substantial rise from the August reading of 65.7. A preliminary estimate earlier I September set the figure at 70.2.
The latest figure beats economists’ forecasts, who had predicted an average reading of 70.5.
The September level is the highest in 18 months. read more
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