Showing posts with label industry. Show all posts
Showing posts with label industry. Show all posts
Wednesday, March 19, 2014
Service Industry Expansion Continued in December
The service industry continues to improve according to the ISM’s non-manufacturing index. The index improved to a reading of 56.1 in December, its highest level since February. December’s improvement marks the fifth increase in six months. The non-manufacturing index has now remained above 50 – indicating industry expansion – for 36 consecutive months.
The details of December’s report were encouraging as well, with new orders improving to 59.3. The employment index jumped 6.0 points, reaching 56.3, its highest level since march. Export orders improved in December, gaining 1.5 points and presenting a much smaller drag on expansion.
Overall business activity edged lower in December, losing 0.9 points, however remain above 60, an extremely strong reading. Inventories improved slightly in December, however remain below their neutral threshold of 50, indicating a drag on expansion.
Read the ISM release.
ReadThe RestEntry..
The details of December’s report were encouraging as well, with new orders improving to 59.3. The employment index jumped 6.0 points, reaching 56.3, its highest level since march. Export orders improved in December, gaining 1.5 points and presenting a much smaller drag on expansion.
Overall business activity edged lower in December, losing 0.9 points, however remain above 60, an extremely strong reading. Inventories improved slightly in December, however remain below their neutral threshold of 50, indicating a drag on expansion.
Read the ISM release.
Sunday, October 27, 2013
Industry Continues to Regain Strength in Face of Challenges
The FDIC released its Quarterly Banking Profile today, that highlighted the strength of the industry in light of difficult conditions.
“While economic difficulties remain, higher capital levels, increased liquidity and lower losses signal a positive trajectory as the banking industry continues to gain strength.”
Increased Business Lending
“Banks are aggressively seeking out borrowers with a strong capacity to repay loans. Slow economic growth and high levels of uncertainty are still restraining lending, but that tide is beginning to turn. Business lending was particularly strong, increasing 10 percent compared to the same period a year ago. This uptick signals increased optimism about the broader economy, as businesses become more willing to take on debt and consider expansion.”
Record Capital Ratios
“The industry continues to put loan loses behind it and plow earnings back into capital. Capital backs every loan made and record capital ratios demonstrate a firm foundation of financial health.
“Banks added over $24 billion in equity capital during the third quarter and $288 billion since 2008 when the financial crisis took hold. Total industry capital is almost $1.6 trillion. Banks also have set aside more than $197 billion in reserves to cover possible loan losses. Capital plus reserves gives a total buffer protecting the industry of almost $1.8 trillion. In addition, the industry’s capital-to-assets ratio – a key measure of financial strength – remains at an all-time high.”
Strong Bank Earnings
"You cant have a strong economy without having a strong, growing and profitable banking sector. The return to health is a critical first step toward rebuilding the economic vitality of the country."
Problem Banks and Loan Losses
“The considerable slowdown in bank failures and continuing decline in the number of troubled banks is a positive sign as our industry continues to regain its health. The FDIC is rebuilding reserves as the industry -- which is solely responsible for all the agency’s expenses -- paid about $14 billion in premiums over the last year.”
Read ABAs statement on FDICs Quarterly Baning Profile.
Read the FDICs Quarterly Banking Profile.
ReadThe RestEntry..
“While economic difficulties remain, higher capital levels, increased liquidity and lower losses signal a positive trajectory as the banking industry continues to gain strength.”
Increased Business Lending
“Banks are aggressively seeking out borrowers with a strong capacity to repay loans. Slow economic growth and high levels of uncertainty are still restraining lending, but that tide is beginning to turn. Business lending was particularly strong, increasing 10 percent compared to the same period a year ago. This uptick signals increased optimism about the broader economy, as businesses become more willing to take on debt and consider expansion.”
Record Capital Ratios
“The industry continues to put loan loses behind it and plow earnings back into capital. Capital backs every loan made and record capital ratios demonstrate a firm foundation of financial health.
“Banks added over $24 billion in equity capital during the third quarter and $288 billion since 2008 when the financial crisis took hold. Total industry capital is almost $1.6 trillion. Banks also have set aside more than $197 billion in reserves to cover possible loan losses. Capital plus reserves gives a total buffer protecting the industry of almost $1.8 trillion. In addition, the industry’s capital-to-assets ratio – a key measure of financial strength – remains at an all-time high.”
Strong Bank Earnings
"You cant have a strong economy without having a strong, growing and profitable banking sector. The return to health is a critical first step toward rebuilding the economic vitality of the country."
Problem Banks and Loan Losses
“The considerable slowdown in bank failures and continuing decline in the number of troubled banks is a positive sign as our industry continues to regain its health. The FDIC is rebuilding reserves as the industry -- which is solely responsible for all the agency’s expenses -- paid about $14 billion in premiums over the last year.”
Read ABAs statement on FDICs Quarterly Baning Profile.
Read the FDICs Quarterly Banking Profile.
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