NEC Director Hassett makes reference to a GS observe that signifies that August preliminary figures sometimes get revised up (NBCNews) The GS observe (Walkers/Rindel, Sept 4) cites a 61K downward bias in preliminary vs. third launch… so +22 turns into +83K.
I believe I perceive this level; what I do to examine what seasonal adjustment processes have an effect on issues is to match how completely different a 12 month change within the not-seasonally-adjusted collection is from the corresponding change within the seasonally-adjusted collection. Right here’s the comparability.
Determine 1: 12-month log distinction in seasonally adjusted NFP (FRED collection PAYEMS) (blue), and in not-seasonally-adjusted NFP (FRED collection PAYNSA) (tan). Supply: FRED, writer’s calculations.
The 12 month development charge for the n.s.a. collection is decrease than that for the s.a. collection. Not proof optimistic that seasonal adjustment processes aren’t doing one thing unusual – simply placing bounds on how a lot you’ll be able to look to seasonal adjustment to make the outlook seem much less dismal.
As an apart, industrial manufacturing shouldn’t be at an all time excessive; the July studying was barely under the June studying. Extra considerably, capability utilization in July (77.5%) was down from the June 2024 charge of 78.2%.
