Retail sales advanced after the fall in gasoline price allowed consumers to increase purchases of food and beverages and other items. Motor vehicle sales rose.
Industrial production fell unexpectedly in August. The index for durable goods manufacturing was unchanged and for nondurable manufacturing increased 0.2%, and for other manufacturing eased 0.1%.
U.S. trade deficit eased 13% in August to $70.6 billion but rose 29% or $136.6 billion from a year ago. In a familiar trade pattern, the U.S. recorded large deficits with China, European Union, Mexico, Vietnam and Canada.
Non-farm payrolls rose at a slower pace in August and the job additions were led by professional services and healthcare sectors. Jobless rate increased after labor force participation rate rose to 62.4%.
New job openings, hires and separations were nearly unchanged in July as the labor market remained strong according to the latest report from the Bureau of Labor Statistics.
The personal consumption price index fell in July but the core index which excludes food and energy rose. The measure of inflation understates price pressures in the economy and benchmarks lower living standards inflicted on consumers .
In a forceful reminder delivered in a sobering tone, Fed Chairman stressed that lowering inflation may take longer and will inflict short-term pain to the economy.
Existing home sales declined for the sixth month in a row as mortgage rates and home prices stay elevated. Home sale time dropped to a record low 14 days.
Fed policymakers remarked that the recent decline in oil and commodities prices could not be relied upon for lower inflation as these volatile prices could easily rebound.
