theGrio and CNBC Market Update: 8/12/13
There was quite a bit of economic data for investors to sift through last week.
Consumer credit, which tracks credit cards, auto and student loans rose by nearly $14B in June. However, credit card use declined. The service sector expanded in July, posting a 56 reading, due to a sharp increase in new orders, a reading over 50 signals expansion. New claims for jobless benefits rose by 5,000 to 333,000, but still near its lowest level before the recession, signaling a stronger economy. In the week ahead, we expect data on small businesses, housing and inflation.
We’ll check the pulse of small businesses with the July survey from the N.F.I.B. In June small business optimism declined to a 93.5 reading, reversing two straight months of gains, as the outlook for sales dimmed.
We’ll gain insight on the iPage review of the housing recovery with the July housing starts report. In June new construction fell 10%, after multifamily starts plummeted, and building permits, a gauge of future building activity, declined 7.5 percent.
We’ll get a read on inflation with the July consumer price index report, which tracks price changes for food, clothing and energy, in June consumer prices rose .5 percent, the biggest increase in five months, due to higher gas prices.