Econ Edge: The Economic Week
Dec. 5, 2006 — -- Here is a look at this week's economic news calendar:
Monday, Dec. 4
The government says that retail gasoline prices saw their largest weekly increase in five month, as consumers paid a nickel more per gallon than they did last week. According to figures released by the Energy Information Administration, the average retail price for a gallon of regular unleaded was $2.30 last week, up five cents from the prior week. That five-cent increase is the largest weekly bump up in prices since the week of July 3, when the average price was $2.93. Gas now costs 7 percent more than it did a year ago ($2.15).
Tuesday, Dec. 5
[expected: +0.5 percent / prior: +0.0 percent]
Is the American workforce becoming more efficient? This index measures the output per worker. Increasing productivity over the past years has allowed business to expand without adding to payrolls. A smaller increase in productivity is a generally positive sign for hiring. This is the second of two reports on the July to September 2006 timeframe.
[prior: +1 / trend: two month run-up]
The ABC News Polling Unit issues its weekly look at consumer sentiment in the United States. Consumer confidence has blown by its 2006 average matching its high for the year -- likewise its best since April 2002. It's risen sharply from a recent low of -19 in late August. Among the components of the index, 44 percent call it a good time to spend money -- not a majority (it very rarely is) but up four points just this week, up 10 points since mid-September and eight points better than at this time last year. As many rate the national economy positively, and as usual more, 64 percent, say their own finances are good.
Wednesday, Dec. 6
This weekly report shows the nation's stockpiles of key energy supplies of crude and all its derivatives. The government also releases information showing consumer demand.
Thursday, Dec. 7
[expected: +$4.5 billion / prior: -$1.2 billion]
This report offers a good look at how much consumers are borrowing to spend. The Fed's report includes credit card debt and loans for such items as boats, cars and mobile homes. Last month's decline was the first down month since March. Economists expected the unusual down month not to be repeated, making the nation's collective outstanding personal debt to nearly $2.2 trillion.
Friday, Dec. 8
[expected: +105,000 jobs and 4.5 percent unemployment / prior: +92 percent jobs and 4.4 percent unemployment]
Arguably the most important economic report with significant political and economic implications: Is the economy stalled or not? Last month's report came right before the mid-term election and had a little bit of something for everyone. The nation's unemployment rate dipped to 4.4% (more than expected) and employers added just 92,000 jobs during the month (lower than expected). Interestingly, revisions to prior months added another 139,000 jobs making the report fairly positive despite the disappointing headline number. The revisions have made some economists and market watchers unsure that the report is as "good" as it should be. Be on the lookout for big revisions; that could spark some heat.
Some information was compiled from wire services.