ECONOMY WEEKLY - WEEK OF SEPTEMBER 13, 2010

For Immediate Release:

September 17, 2010

Contact:

Katie Grant
Maureen Beach

 



“Retail sales in August proved a solid result, helping to allay ongoing concerns over a double-dip recession…Evidence of renewed life in household spending suggests that market pessimism over the summer did not completely knock out the consumer.” -Michael Woolfolk, senior currency strategist at Bank of New York Mellon. [Financial Times, 7/14/10]
 
Economy Highlight 
 
  • According to the Department of Labor, jobless claims are at a two month low. “The government reported that 450,000 people filed for first-time benefits for the week ended Sept. 11, down 3,000 from the revised figure for the prior week. Economists had expected 460,000 Americans to have filed for first-time unemployment insurance last week.” [CNN, 9/16/10
  • The Department of Commerce also reported on Tuesday that August retail sales rose 0.4 percent—higher than economists’ expectations and an increase from the revised 0.3 percent increase in July.  “Some economists pointed to the data as a sign that the engine of the national economy - consumer spending - is revving back up.” [Washington Post, 9/14/10
  • According to a report released by the Department of Commerce on Tuesday, business inventory growth in July was revised upward from .5 percent to 1 percent.  “July’s percentage increase was the largest since July 2008…the trend… if sustained, could see inventories making a significant contribution to G.D.P. growth in the third quarter.” [NY Times, 9/14/10]
Recovery Highlight
 
  • On Friday, the White House released a report highlighting some of the most innovative and effective Recovery Act projects. “The report, entitled ‘100 Recovery Act Projects That are Changing America,’ highlights projects nationwide that the White House says are putting people back to work now and transforming the country's economy for years to come.” [ABC News, 9/17/10] Click here to read the report in pdf. 
  • The Department of Commerce announced 35 Recovery Act grants worth a total of $482.4 million for broadband infrastructure. “The stimulus-funded projects are designed to expand public access to computers and broadband Internet availability, particularly in rural areas. The Recovery Act included almost $7 billion for rural broadband access; Monday's announcement was the second in a series of broadband grant awards from the National Telecommunications and Information Administration (NTIA).” [The Hill, 9/13/10]