October 9th, 2013 4:37 PM by Nick Rapplean
Last week’s economic data was thrown into disarray due to the temporary shutdown of the Federal government. Among the delayed announcements was the Census Bureau’s August construction spending totals and factory orders data. Most importantly, the Bureau of Labor Statistics’ report on September’s unemployment rate and payrolls was delayed. The unemployment report represents a key measure of economic health. The longer the Bureau of Labor Statistics stays closed (or marginally staffed), the higher the likelihood of additional problems. For instance, if the shutdown lasts long enough to delay the Department of Labor’s household survey, which begins in mid-October, then the release of the Bureau’s October employment report could be delayed as well. What is known about the unemployment rate for September is that economists were expecting no change from the August rate of 7.3 percent. 11.3 million Americans were listed as unemployed last month. In any case, the Bureau of Labor Statistics and the Department of Labor have given no indication as to when they will resume normal reporting. While the lack of monthly jobs data frustrated many, there was news in terms of recent employment data. According to last week’s report from the Employment and Training Administration, jobless claims are still hovering at a six-year low. The number of Americans filing first-time claims for unemployment insurance during the week ending Sept. 28 notched up slightly to 308,000, a gain of 1,000 claims from the previous week's revised figure of 307,000. The four-week moving average was 305,000, a drop of 3,750 from the prior week's revised average of 308,750. The Administration also reported that the total number of unemployed Americans covered by insurance during the week ending Sept. 21 was 2,925,000. This was an increase of 104,000 from the previous week's revised level of 2,821,000. The four-week moving average was 2,837,250, a drop of 4,750 from the previous week's revised average of 2,842,000. It is likely that the weekly first-time jobless data will be some of the only government-generated economic data to be released during the shutdown. Likely, we can also expect this week’s initial claims for jobless benefits to experience a spike due to furloughed federal employees filing claims. Another piece of data that wasn’t hampered by the shutdown was September’s new car and truck sales totals for the auto manufacturers. That being said, September’s numbers were subject to slight skewing as the auto industry counts the Labor Day weekend (Sept. 1-3) sales as part of Augusts’ totals. Bearing that in mind, September’s sales fell 24.2 percent from August, and 4.2 percent from a year earlier, with the auto manufacturers selling 1.1 million new cars and trucks. This was roughly 50,000 vehicles off from September 2012. Looking at individual manufactures: Ford and Chrysler saw gains with their sales rising 5.7 percent and 0.7 percent, respectively. General Motors’ sales dropped 11 percent. The major Asian car makers also posted a decline in sales with Kia seeing a 21 percent decline; Honda, 9.9 percent; Hyundai, 8.2 percent; Nissan, 5.5 percent; and finally, Toyota, who suffered a 4.3 percent loss.