an economic report

The United States Economic Index

The United States Economic Index has risen in the last month as compared to previous data. As witnessed by the Conference Board and an agency charged with providing strategic information to leading organizations in order to enhance their efficiency and quality of services in October 2017. The board announced a 2.9 percent increase in the Leading Economic Index, as well as a 5.9 percent annual rate increase for the six-month period ended in October 2017. (Conference-board.org, 2017). This rise was achieved through different positive contributors such as an increase in the average consumer expectations for business conditions as well as an increase in the average weekly initial claims for unemployment insurance.

Lagging Factors

However, amidst all the positive factors that led to the rise in the economic index for October, there were some lagging factors that limited the rise such as the average duration of unemployment, the commercial and industrial loans among other factors.

Growth in Food Production and Retail Services

The United States Census Bureau, on the other hand, reported an estimated growth increase in the amount of food production and retail services in the country for the month of October. There was a 0.2% (±0.5%) increase in the sales from $485.4 billion to $486.6 billion in sales (Census.gov, 2017). The trading-day differences between the two months was as a result of the adjusted seasonal variation and the onset of the holiday seasons.

Consumer Credit

The consumer credit involving both the revolving and non-revolving forms of credit saw an increase of 5.5 % for the month of September 2017 and an annual increase of 6.75%. The Federal Reserve Bank saw a significant flow of billions of dollars between the two periods. A total of $ 289.5 billion was received by the bank for the month of September 2017 compared to a $ 281.1 billion which was recorded by the bank for a similar period in 2016 (The Fed - Consumer Credit - G.19, 2017). The amount flowing through the banking system includes all forms of credit extended to individuals only excluding loans secured by real estates.

Bank Reserves and Monetary Policy

The Federal Reserve Bank also monitors the amount of money that is maintained within the institution’s vault. A specified amount is required to be maintained by the bank for it to be able to implement its monetary policy. This amount as recorded by the bank’s releases has been fluctuating in between each months, but as recorded, the amount of money maintained as minimum balance for the month of October was seen to be higher compared to that of 2016. The bank recorded $ 2.1 million dollars for October 2017 compared to $ 1.9 million dollars for October 2016 (The Fed - Aggregate Reserves of Depository Institutions and the Monetary Base - H.3 - November 16, 2017, 2017).

Money Stock and Debt Measures

There was a 7.8% increase in the seasonally adjusted rates between October 2016 and October 2017. The report shows that in 2016, the money stock rates were at $ 3,335.6 billion while the 2017 rates were at were at $3,594.8 billion. As for monthly analysis, the rates for September 2017 were recorded at $3,553.2 dollars compared to the $ 3,594.8 billion from October of the same year (The Fed - Money Stock and Debt Measures - H.6 Release - November 16, 2017, 2017). The 1.1% increase in the in the amount of money stock measures received by the banks between September and October show the rate of increase in the economic development in the country.

Continued Economic Growth

This growing trend in the economic index from September’s Hurricane crises only affected the index for September. Analysis recorded after the Hurricane crisis show an increase in the economic prowess in the country and is expected to continue through to 2018.

References

Census.gov. (2017). Census.gov. Retrieved 24 November 2017, from https://www.census.gov/retail/marts/www/marts_current.pdf

Conference-board.org.(2017). Conference-board.org. Retrieved 24 November 2017, from https://www.conference-board.org/

The Fed - Aggregate Reserves of Depository Institutions and the Monetary Base - H.3 - November 16, 2017. (2017). Federalreserve.gov. Retrieved 24 November 2017, from https://www.federalreserve.gov/releases/h3/current/

The Fed - Consumer Credit - G.19. (2017). Federalreserve.gov. Retrieved 24 November 2017, from https://www.federalreserve.gov/releases/g19/current/default.htm

The Fed - Money Stock and Debt Measures - H.6 Release - November 16, 2017. (2017). Federalreserve.gov. Retrieved 24 November 2017, from https://www.federalreserve.gov/releases/h6/current/default.htm