Category Archives: US business

Unemployment Claims Edge Up as Holiday Workers Released

Posted on January 16, 2012 by admin

On January 12, the US government released the Unemployment Insurance Weekly Claims Report .  The report includes data on insurance claims growth or decline in various business sectors and from various state and federal sources.  Releases of temporary holiday employees resulted in an increase in unemployment insurance claims.  399,000 initial claims were filed in the week ending January 7, up from the 375,000 claims filed the previous week. Seasonally insured unemployment remained relatively unchanged, with 3,628,000 insured unemployed as of December 31, 2011.  The number is only 19,000 higher than the 3,609,000 than the week before. Unadjusted unemployment claims in all federal and state programs as of December 24 are 7,333,213, up from 7,222,203 the week before.  The numbers are significantly decreased from December 2010, when they were over 9,000,000.  Practically all categories in the report are lower than the year before – state programs, extended benefits, federal programs, etc. Two significant factors in the rise of insurance claims are temporary employees being released after the holiday season and continual reductions in military forces.  With employment in such flux at the present time due to the holidays, it may take some months to determine the definitive effects on employment over the holidays. For consumers, it is good and bad news.  The good news is that the bad news is better this year than last year.  The bad news is that employment growth is still reduced, and may likely stay stagnant until definitive policy and business changes are made to the landscape.  With businesses not significantly hiring, little growth is occurring and consumers are left with fewer choices of products. Continue reading →

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US Business Inventories Increase

Posted on January 14, 2012 by admin

The Census Bureau of the Department of Commerce just released promising information for the economy in its Business Inventory Report .  The US business inventories to sales ratio is improving with a rise of inventories of 0.3% that corresponds with a 0.4% increase in November sales.  According to analysis in  USA Today , businesses lower their inventories significantly during recessions due to the decline in demand.  The increase in inventories may be an indication that the economy is improving.  When coupled with other recent economic news, this information provides a promising outlook for the economy. The Business Inventory Report includes data on the inventories that businesses are maintaining relative to sales regarding the manufacturing, wholesale and retail firms. The data also reflects an important dynamic between supply and demand. Businesses that have rising inventories often reflect a positive perspective of the economy.  If businesses are stocking inventories, they are anticipating a greater amount of sales and higher consumer demand.  However, if businesses have too much inventory, supply will exceed demand.  This mismatch can cause unemployment as businesses slow production to allow inventories to run down.  Many economists view a steady growth of inventory as a positive indicator of economic growth. The Business Inventory Report cannot be used on its own in order to assess the health or future of the economy.  The report provides statistical data for two months prior to the report, making the report a less timely and useful measure than other available data.  Manufacturing and wholesale information is released prior to the release of the information pertaining to retail sales, so the market typically does not have a strong reaction to the limited new information the report provides.  However, an increase in inventories coupled with an increase in consumer spending and a decrease in unemployment claims indicate a stronger confidence in the economy as a whole.  This confidence helps business owners and consumers to be cautiously optimistic about the economy. Continue reading →

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