National and Regional Update Charlotte Chapter of American Association of Individual Investors, Sept. 14, Rick Kaglic Senior Regional Economist

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1 National and Regional Update Charlotte Chapter of American Association of Individual Investors, Sept. 14, 2013 Rick Kaglic Senior Regional Economist

2 A Quick Disclaimer 2

3 Real Gross Domestic Product Q2 Q3 Q4 Q1 Q2 CHANGE FROM PREVIOUS QUARTER AT COMPOUND ANNUAL RATE [Percent]: Gross Domestic Product Personal Consumption Expenditures Nonresidential Fixed Investment Structures Equipment Intellectual Property Residential Fixed Investment Exports of Goods & Services Imports of Goods & Services Government Consumption Expenditures & Gross Investment Final Sales to Domestic Purchasers LEVEL IN QUARTER AT SEASONALLY ADJUSTED ANNUAL RATE [Billions of Chained (2009) Dollars]: Change in Private Inventories Net Exports of Goods & Services Source: Bureau of Economic Analysis/Haver Analytics 3

4 Real Gross Domestic Product Q2 Q3 Q4 Q1 Q2 CHANGE FROM PREVIOUS QUARTER AT COMPOUND ANNUAL RATE [Percent]: Gross Domestic Product Personal Consumption Expenditures Nonresidential Fixed Investment Structures Equipment Intellectual Property Residential Fixed Investment Exports of Goods & Services Imports of Goods & Services Government Consumption Expenditures & Gross Investment Final Sales to Domestic Purchasers LEVEL IN QUARTER AT SEASONALLY ADJUSTED ANNUAL RATE [Billions of Chained (2009) Dollars]: Change in Private Inventories Net Exports of Goods & Services Source: Bureau of Economic Analysis/Haver Analytics 4

5 Real Gross Domestic Product Q2 Q3 Q4 Q1 Q2 CHANGE FROM PREVIOUS QUARTER AT COMPOUND ANNUAL RATE [Percent]: Gross Domestic Product Personal Consumption Expenditures Nonresidential Fixed Investment Structures Equipment Intellectual Property Residential Fixed Investment Exports of Goods & Services Imports of Goods & Services Government Consumption Expenditures & Gross Investment Final Sales to Domestic Purchasers LEVEL IN QUARTER AT SEASONALLY ADJUSTED ANNUAL RATE [Billions of Chained (2009) Dollars]: Change in Private Inventories Net Exports of Goods & Services Source: Bureau of Economic Analysis/Haver Analytics 5

6 Real Gross Domestic Product Q2 Q3 Q4 Q1 Q2 CHANGE FROM PREVIOUS QUARTER AT COMPOUND ANNUAL RATE [Percent]: Gross Domestic Product Personal Consumption Expenditures Nonresidential Fixed Investment Structures Equipment Intellectual Property Residential Fixed Investment Exports of Goods & Services Imports of Goods & Services Government Consumption Expenditures & Gross Investment Final Sales to Domestic Purchasers LEVEL IN QUARTER AT SEASONALLY ADJUSTED ANNUAL RATE [Billions of Chained (2009) Dollars]: Change in Private Inventories Net Exports of Goods & Services Source: Bureau of Economic Analysis/Haver Analytics 6

7 Real Gross Domestic Product Q2 Q3 Q4 Q1 Q2 CHANGE FROM PREVIOUS QUARTER AT COMPOUND ANNUAL RATE [Percent]: Gross Domestic Product Personal Consumption Expenditures Nonresidential Fixed Investment Structures Equipment Intellectual Property Residential Fixed Investment Exports of Goods & Services Imports of Goods & Services Government Consumption Expenditures & Gross Investment Final Sales to Domestic Purchasers LEVEL IN QUARTER AT SEASONALLY ADJUSTED ANNUAL RATE [Billions of Chained (2009) Dollars]: Change in Private Inventories Net Exports of Goods & Services Source: Bureau of Economic Analysis/Haver Analytics 7

8 Real Gross Domestic Product Q2 Q3 Q4 Q1 Q2 CHANGE FROM PREVIOUS QUARTER AT COMPOUND ANNUAL RATE [Percent]: Gross Domestic Product Personal Consumption Expenditures Nonresidential Fixed Investment Structures Equipment Intellectual Property Residential Fixed Investment Exports of Goods & Services Imports of Goods & Services Government Consumption Expenditures & Gross Investment Final Sales to Domestic Purchasers LEVEL IN QUARTER AT SEASONALLY ADJUSTED ANNUAL RATE [Billions of Chained (2009) Dollars]: Change in Private Inventories Net Exports of Goods & Services Source: Bureau of Economic Analysis/Haver Analytics 8

9 Real Gross Domestic Product Percent change from previous quarter at annual rate Q2 2.5% Source: Bureau of Economic Analysis/Haver Analytics 9

10 ISM: Business Survey Indexes MANUFACTURING BUSINESS: NONMANUFACTURING BUSINESS: July Aug. July Aug. Purchasing Managers Index NonManufacturing Index Production Business Activity New Orders New Orders Employment Employment Supplier Deliveries Supplier Deliveries Inventories Inventories Prices Prices Backlog of Orders Backlog of Orders New Export Orders New Export Orders Imports Imports DIFFUSION INDEXES: Numbers above 50 percent indicate more favorable responses towards economic activity. Source: Institute for Supply Management/Haver Analytics 10

11 ISM: Business Survey Indexes MANUFACTURING BUSINESS: NONMANUFACTURING BUSINESS: July Aug. July Aug. Purchasing Managers Index NonManufacturing Index Production Business Activity New Orders New Orders Employment Employment Supplier Deliveries Supplier Deliveries Inventories Inventories Prices Prices Backlog of Orders Backlog of Orders New Export Orders New Export Orders Imports Imports DIFFUSION INDEXES: Numbers above 50 percent indicate more favorable responses towards economic activity. Source: Institute for Supply Management/Haver Analytics 11

12 ISM: Business Survey Indexes MANUFACTURING BUSINESS: NONMANUFACTURING BUSINESS: July Aug. July Aug. Purchasing Managers Index NonManufacturing Index Production Business Activity New Orders New Orders Employment Employment Supplier Deliveries Supplier Deliveries Inventories Inventories Prices Prices Backlog of Orders Backlog of Orders New Export Orders New Export Orders Imports Imports DIFFUSION INDEXES: Numbers above 50 percent indicate more favorable responses towards economic activity. Source: Institute for Supply Management/Haver Analytics 12

13 ISM: Business Survey Indexes MANUFACTURING BUSINESS: NONMANUFACTURING BUSINESS: July Aug. July Aug. Purchasing Managers Index NonManufacturing Index Production Business Activity New Orders New Orders Employment Employment Supplier Deliveries Supplier Deliveries Inventories Inventories Prices Prices Backlog of Orders Backlog of Orders New Export Orders New Export Orders Imports Imports DIFFUSION INDEXES: Numbers above 50 percent indicate more favorable responses towards economic activity. Source: Institute for Supply Management/Haver Analytics 13

14 ISM: Business Survey Indexes MANUFACTURING BUSINESS: NONMANUFACTURING BUSINESS: July Aug. July Aug. Purchasing Managers Index NonManufacturing Index Production Business Activity New Orders New Orders Employment Employment Supplier Deliveries Supplier Deliveries Inventories Inventories Prices Prices Backlog of Orders Backlog of Orders New Export Orders New Export Orders Imports Imports DIFFUSION INDEXES: Numbers above 50 percent indicate more favorable responses towards economic activity. Source: Institute for Supply Management/Haver Analytics 14

15 Nonfarm Payroll Employment Millions of Persons August 136 mil Source: Bureau of Labor Statistics/Haver Analytics 15

16 Civilian Unemployment Rate Percent August 7.3% 6.5% Threshold FOMC Forecast Notes: FOMC forecast is the central tendency for the Q4 levels, from the June meeting Source: Bureau of Labor Statistics, Board of Governors, Haver Analytics 16

17 Civilian Unemployment Rate 19 Percent Official Aug Plus Marginally Attached Plus Involuntarily Part-Time 13.7% % % Source: Bureau of Labor Statistics/Haver Analytics 17

18 Gauges of Inflation Expenditure Price Indexes [Percent Change from Previous Month at Annual Rate]: June July YoY % Personal Consumption Expenditures Core (excludes Food* and Energy) Consumer Price Indexes [Percent Change from Previous Month at Annual Rate]: June July YoY % All Items Core (excludes Food and Energy) Producer Price Indexes [Percent Change from Previous Month at Annual Rate]: June July YoY % Finished Goods Core (excludes Food and Energy) Core Intermediate Goods Crude Goods Spot Commodity Price Index [Percent Change from Previous Month]: July Aug. YoY % CRB Spot Commodity Price Index Notes: Core PCE Price Index includes expenditures on food services. Source: BEA, BLS, Commodity Research Bureau, Haver Analytics 18

19 Gauges of Inflation Expenditure Price Indexes [Percent Change from Previous Month at Annual Rate]: June July YoY % Personal Consumption Expenditures Core (excludes Food* and Energy) Consumer Price Indexes [Percent Change from Previous Month at Annual Rate]: June July YoY % All Items Core (excludes Food and Energy) Producer Price Indexes [Percent Change from Previous Month at Annual Rate]: June July YoY % Finished Goods Core (excludes Food and Energy) Core Intermediate Goods Crude Goods Spot Commodity Price Index [Percent Change from Previous Month]: July Aug. YoY % CRB Spot Commodity Price Index Notes: Core PCE Price Index includes expenditures on food services. Source: BEA, BLS, Commodity Research Bureau, Haver Analytics 19

20 Regional Business Activity Diffusion Index Source: FRB/Haver Analytics 20

21 Regional Payroll Employment Index, Dec = 100 Source: BLS/Haver Analytics 21

22 Regional Payroll Employment Index, Dec = 100 Source: BLS/Haver Analytics 22

23 Regional Payroll Employment Index, Dec = 100 Source: BLS/Haver Analytics 23

24 Regional Payroll Employment Index, Dec = 100 Source: BLS/Haver Analytics 24

25 Regional Payroll Employment Index, Dec = 100 Source: BLS/Haver Analytics 25

26 Unemployment Rates Percent Source: BLS/Haver Analytics 26

27 Labor Force Index, Dec = 100 Source: BLS/Haver Analytics 27

28 In Conclusion 28

29 The views expressed here are those of the author, and do not necessarily represent those of the Federal Reserve Bank of Richmond or the Federal Reserve System.

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