Part 2 of our look at ways banks and financial institutions can use emerging blockchain technology.
Daily Economy News
The Index of Consumer Sentiment from the University of Michigan rose in early August, driven by a jump in expectations about the future of the economy. The overall index came in at 97.6 in the first half of August versus 93.4 at the end of July, a rise of 4.5 percent.
Smart contracts are highly useful in many cases where contracting parties lack a strong ex post enforcement mechanism (like a court system) and need to pre-commit to not defrauding or otherwise taking advantage of each other when executing a contract.
Surveys from the New York and Philadelphia Federal Reserve Banks point to robust economic activity and upbeat expectations about the future in their regional economies.
The Consumer Price Index rose 0.1 percent in July and is up 1.7 percent from a year ago. The volatile food and energy components had contrasting results, with food prices up 0.2 percent while energy prices fell 0.1 percent.
Producer prices were mostly lower in July. The producer price index for final demand fell 0.1 percent as the goods index fell 0.1 percent and services fell 0.2 percent. Within the goods category, food prices were unchanged in July and energy prices fell 0.3 percent.
Productivity, or output per hour, for the nonfarm business sector increased 0.9 percent at an annual rate in the second quarter, up from a 0.1 percent pace in the first quarter. Over the past four quarters, productivity increased 1.2 percent.
A record 6.16 million positions were open at the end of June, according to the Bureau of Labor Statistics, up from 5.70 million at the end of May. Private-sector employers had a record 5.59 million vacancies to fill, up from 5.17 million in May.
AIER’s economics-across-the-curriculum approach is designed to encourage the infusion of economic concepts into various disciplines and across instructional levels. In 2017 our program attracted a diverse group of participants from middle school to college who are teaching a variety of subjects.
Payrolls in the United States rose by 209,000 in July, the second monthly gain above 200,000 in a row. Most, but not all, of the information in the July report was positive and provides evidence for a continuing economic expansion.
Following Tuesday’s report from the Institute for Supply Management suggesting that the manufacturing sector expanded at a slightly slower pace in July, yesterday’s report from the ISM suggests a similar performance for the non-manufacturing sector.
AIER’s 2017 Summer Fellowship Program comes to a close today. As students are departing, we are reflecting on continued legacy of our founder, Col. E.C. Harwood, who advocated “efforts to promote independent scientific inquiry and education.”
The manufacturing sector’s Purchasing Managers’ Index registered a 56.3 reading in July, down from 57.8 in June. The PMI and most of the components remain at solidly favorable levels despite small declines in the latest month.
The initial estimate for second-quarter real gross domestic product shows the economy expanded at a 2.6 percent annualized rate, up from a revised 1.2 percent pace in the first quarter. The 2.6 percent growth rate is solidly above the 2.1 percent average annualized pace since 2009.
New orders for nondefense aircraft and parts surged 131.2 percent in June to $25.3 billion, the third-highest on record. The backlog of unfilled orders rose $13.3 billion to $585.6 billion, just 4.3 percent below its all-time record reached in 2014.
Consumer confidence as gauged by The Conference Board’s consumer-confidence survey improved in July, rising to 121.1 from 117.3 in June. The result differs from the slightly lower consumer-sentiment data from the University of Michigan released last week.