US Economic Indicators – April 2010

The labor market showed signs of stabilization, as official unemployment in March remained 9.7%, and employers cut fewer jobs. However, the labor market remains volatile as the labor force participation rate remained low at 64.9% and the number of discouraged employees grew. In March, consumer sentiment increased by 13%, and producer sentiment improved by 5%. In February, nominal personal consumption grew by 0.3% on a month-on-month basis, while real personal consumption grew by 1.6% on a year-on-year basis. Nominal disposable income was flat on a month-on-month basis, while real disposable income grew 1% on a year-on-year basis. Annual inflation was 2.1% and consumer prices were flat from January to February. Economists expect steady growth of GDP in the next 12 months. Other key changes in the past month include:

• New orders for consumer goods remained flat (a 0.08% month-on-month change) in February.
• In February, new orders for capital goods declined by 1.2% relative to their level in January.
• The months’ inventory of homes, a measure of how long it would take to sell a new house, grew to 9.2 months, while the number of new building permits fell by 5.9%.

Monthly Report