Last Week in the News
Monday, October 16th, 2006| The U.S. trade deficit — the difference in value between the goods and services imported and exported by the United States — hit an all-time high of $69.9 billion in August, up 2.7% from July’s $68 billion deficit. The trade deficit is on track to set a record for a fifth straight year, running at an annual rate of $784.2 billion, 9.4% higher than last year’s $716.7 billion record.
However, the nation’s federal deficit — government spending versus incoming revenues — fell to $247 billion, a four-year low and a 22% improvement over the $318.7 billion deficit in 2005. Revenues climbed by 11.7% while spending increased only 7.3%. Retail sales dipped a bigger-than-expected 0.4% in September, the Commerce Department reported October 13, but if the big drop in gasoline prices is excluded, retail prices would have posted a 0.6% advance. In addition, the University of Michigan reported that the big declines in gasoline costs helped consumer confidence rise sharply in October, posting a preliminary index for the month of 92.3, up from 85.4 in September. Analysts said the rise in consumer confidence should translate into solid consumer spending during the upcoming holiday sales season. First-time jobless claims inched up 4,000 to 308,000 for the week ending October 6, the Labor Department said. The median estimate from Wall Street analysts put first-time claims at 310,000. Interest rates on 30-year mortgages moved up slightly from their seven-month low, Freddie Mac reported October 12. This week look for updates on the Producer Price Index on October 17 and Consumer Price Index on October 18. |