2008

Real gross domestic product -the output of goods and services produced by labor and property in the U.S. -increased at an annual rate of 0.6% in the fourth quarter of 2007, according to final estimates released by the Bureau of Economic Analysis. In the third quarter, real GDP increased 4.9%.
 
The GDP estimates released today are based on more complete source data than were available for the preliminary estimates issued last month. In the preliminary estimates, the increase in real GDP was also 0.6%.
 
The increase in real GDP in the fourth quarter primarily reflected positive contributions from personal consumption expenditures (PCE), exports, nonresidential structures, state and local government spending, and equipment and software that were largely offset by …

Durable goods orders fell 1.7% in February, with nondefense capital goods orders excluding aircraft falling 2.6%, according to the U.S. Census Bureau. More details here.
 
“A scenario of economic uncertainty and tightened credit availability, amid high and rising costs for energy and other commodities, is not a conducive environment for business investment in capital equipment,”said Daniel Meckstroth, chief economist for the Manufacturers Alliance/MAPI. 

“…  Manufacturing capacity utilization is declining, and the indicator of slack in the nonindustrial economy, the unemployment rate, is rising. The need for domestic capacity is waning. An important support for the industrial equipment sector is that …

U.S. industrial production fell 0.5 percent in February after having increased 0.1 percent in January. Much of the decrease in February resulted from a weather-related drop of 3.7 percent in the output of utilities. In the manufacturing sector, output decreased 0.2 percent in February, and declines were fairly widespread across industries. The output of mines moved up 0.4 percent.

At 113.7 percent of its 2002 average, total industrial production was 1.0 percent above its year-earlier level. The capacity utilization rate for total industry in February fell 0.6 percentage point, to 80.9 percent, the lowest rate since November 2005.

More details …

Wholesalers shook off a disappointing December to start the New Year strong, helped in part by a price driven surge in the sale of agricultural chemicals, according to Statistics Canada.

Sales by Canadian wholesalers rose a healthy 2.6% in January to $44.1 billion, effectively offsetting the 2.6% drop recorded in December.

In January, six of the seven wholesale sectors reported higher sales, led by very strong growth in the other products” sector (+11.4%). The growth in this sector was driven by higher sales of agricultural chemicals, which also benefited from sharply higher prices during the month.

Wholesalers of machinery and electronic equipment (+2.2%), food, beverage and tobacco products (+2.1%) and building materials (+1.7%) were …