(menafn – ecpulse)
This week confirmed once again the scheme of a successful gradual moderate revival as shown throughout the data and overall reports released this past period and weeks along with this week's Fed's Beige Book, yet challenges persist and the labor market conditions are unsteady and imprecise regardless of the recent clear signs of enhancement seen within this key sector that for instance remains so far in a gray zone.
In fact this week we saw the initial jobless claims of April 07 inclined gloomily to 380 thousand from 357 thousand; above the market forecast of 355 thousand, which is in fact the highest level reached since January 28 and a clear sign that the enhancement so far detected in the labor sector is loosing momentum and remains insufficient to provide this key sector with a full recovery.
No wonder that just recently the New York Federal Reserve Bank President William Dudley proclaimed that publicly that the U.S labor conditions still remain unclear and unstable and therefore believes strongly that is it too soon to claim that the superpower is out of danger watching last month labor data showing that the economy added way fewer jobs than expected.
Yet the Federal Reserve this week released its latest report on economic conditions; the Fed's Beige book, signaling once again the economy continued to expand in all twelve federal reserve districts at a modest-to-moderate pace from mid-February through late March as manufacturing and hiring advanced even as fuel prices may have weighed on the economy
As for the inflation levels across the nation we can easily affirm that prices pressures remain well subdued across the country on a short and long term regardless of the recent surge in prices caused by higher gasoline and fuel prices which is confirmed to only be temporary as attested and forecasted by the Federal Reserve and FOMC members.
Therefore this week's Core PPI for March rose only slightly to 0.3 percent from 0.2 percent as a result of higher light truck and soaps prices and came in at 2.9 percent from 3.0 percent for the year ending March while that the PPI for the same month actually plunged to 0.0 percent from 0.4 percent, all in all confirming stable inflation levels as seen this past month and also past year.
Plus this week consumer price index came in as forecasted at 0.3 percent in March from a prior slight higher reading of 0.4 percent mainly as energy prices recently eased and the Core CPI which excludes in fact energy came in also at 0.1 percent from 0.2 percent and below the market forecasts of 0.2 percent while that Core CPI for the yean ending March rose slightly to 2.3 percent from 2.2 percentNow turning to the trade balance of the world's leading economy, we watched this week its trade gap shrank more than forecasted on lower imports as it narrowed more than forecasted in February to having in fact the deficit shrinking to 44.6 billion; lower than the market predictions of a 51.8 deficit and from a prior deficit of 52.6 billion as the amount of goods and services imported has eased slightly while that exports to foreign territories of the major trading partners of the superpower has inclined.
In fact this gap for the month of February is actually the smallest level recorded since October with the country's purchases of foreign goods decreasing by 2.7 percent, which is the biggest decline since February 2009, while that the Chinese Lunar New Year holiday may have also contributed to the slump in imports along with a declined value of imports of 227.2 billion; the fewest since November.
Furthermore, the superpower's import prices rose considerably in March to actually come in at 1.3 percent; higher than the market predictions of 0.9 percent incline only and of course higher than the prior reading of 1.3 percent as a result of gains in costs of fuel, industrial supplies and clothing, while that for the year ending March this index came in as lower expected at 3.4 percent from a prior reading of 5.5 percent.
While that foreign import value scenario with the superpower's major trading partners is truly mixed as goods from Mexico rose by 1.1 percent the cost of imported goods from China was unchanged in March and little changed from Japan while that the cost for goods from the European Union climbed 0.9 percent, which is the highest level witnessed since May.