GLOBAL ECONOMIC REPORTER

The U.S. housing market cotinues to show signs of recovery from the worst downturn in decades. The drastically reduced prices have lead to increased activities for the past few weeks.

The Federal Reserve Bank of New York reported in its latest Empire State Manufacturing Survey that business conditions have improved significantly. The general business conditions index in August increased 13 points to 12.1, the highest level since November 2007. The index was -0.6 in July and -9.4 in June.

The U.S. Census Bureau and the Department of Housing and Urban Development announced that privately-owned housing starts contracted 1.0% from June. The seasonally adjusted estimate for July was 581,000 while the estimate for June was 587,000.

The U.S. Bureau of Labor Statistics reported that the Producer Price Index (PPI) for finished goods declined 0.9% in July after seasonal adjustment, following a 1.8% increase in June. All major categories experienced declines in prices. Index for energy goods fell by 2.4%, and prices of foods declined by 1.5%. Crude goods prices fell by 4.5% while prices of the intermediate goods decreased 0.2%.

The U.S. Bureau of Labor Statistics reported today that nonfarm payroll employment declined in July by 247,000 from the previous month, but the rate of decline was the smallest since August of 2008. The unemployment rate was unexpectedly lower in July by 0.1 percentage point. The July unemployment rate was 9.4% while most analysts expect a 9.6% rate. The number of unemployment persons stood at 14.5 million in July.

Here is a summary of important data releases this week regarding the performance of the U.S. economy: