BUREAU OF LABOR STATISTICS, DAILY REPORT, MONDAY, APRIL 1, 2002: The proportion of families with an unemployed member increased 1 percentage point to 6.6 percent in 2001, reflecting the recession, according to Bureau of Labor Statistics figures. Among the nation's 72 million families, 82.9 percent shared at least one employed member in 2001, a 0.3 percentage point decline from the previous year. In 2001, 4.8 million families had at least one member unemployed in an average week, an increase of 665,000 from 2000, BLS found. Black families had the highest proportion of unemployed members, 11.4 percent, higher than for Hispanics, 9.9 percent, or white families, 5.8 percent. (Daily Labor Report, page D-9).
Personal income rose a solid 0.6 percent in February, following an upwardly revised 0.5 percent gain in January, the Commerce Department said March 29. The increase in personal income was stronger than analysts were expecting and brought income to $8.88 trillion at a seasonally adjusted annual rate. It was matched by a 0.6 percent increase in personal consumption, or consumer spending, to $7.25 trillion (Daily Labor Report, page D-3). Amid the shaky economy of the past couple of years, housing has emerged as the central pillar of support. The market for housing has become less volatile and less prone to oversupply than before; it has also become the Federal Reserve's main lever for reviving the economy. From the very beginning of the downturn last year, the housing market has been strong. And that remains true today. In February, sales of new homes grew 5.3 percent, to a seasonally adjusted annual rate of 875,000, thanks to good weather and low mortgage rates. Sales of existing homes in February fell only slightly from the record annual pace in January of 6.05 million. Housing prices have been increasing faster than general inflation for several years, and they have accelerated in recent months to their fastest real rate of gain in decades. All this has bolstered consumer spending and helped salve the wounds that the falling stock market inflicted on households (The New York Times, March 30, page B1). The Wall Street Journal feature "Tracking the Economy" (page A2) indicates that according to the consensus forecast, nonfarm payrolls for March, to be released Friday of this week, will increase 50,000, a decline from the 66,000 increase for February. The unemployment rate for March, to be released Friday as well, is predicted to be 5.6 percent, in contrast to the 5.5 percent actual rate in February. Manufacturing activity grew for a second straight month in March, offering further evidence that the sector is back on track after a one-year slump, the Institute for Supply Management of Tempe, Ariz., formerly known as the National Association of Purchasing Management, says. Its index of business activity rose to 55.6 percent in March from 54.7 percent in February. Analysts had been expecting a reading of 54.3. An index above 50 signifies growth in manufacturing, while a figure below 50 shows contraction (Hope Yen, Associated Press, http://www.nandotimes.com/business/story/337309p-2802029c.html). Construction spending posted its biggest increase in a year in February as builders took advantage of Americans' demand for new homes. The Commerce Department reported that spending on construction projects grew by a bigger-than expected 1.1 percent in February. Many analysts were forecasting a smaller, 0.6 percent rise. It was the third straight monthly rise. Virtually all of the strength came from increased spending on residential construction, which rose 3.5 percent, especially single-family homes (Jeannine Aversa, Associated Press, http://www.nandotimes.com/business/story/337295p-2801918c.html). A hard-to-quantify but closely watched indicator has joined the growing number of signs that the economy is recovering. The Conference Board's consumer confidence index, based on a monthly survey of some 5,000 U.S. households, surged in March to its highest level in 7 months. The result exceeded expectations by many analysts, who credited the increase to the brightening job outlook (http://www.csmonitor.com/2002/0401/p16s01-wmgn.html).
<<application/ms-tnef>>
