August 2013: The Month in Charts

Looking at the corporate earnings picture, August was a complex month. There were indications in the U.S. of a slowing economy, as employers hired fewer workers than expected. The unemployment rate hit a 4-1/2-year low as Americans gave up looking for work.

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Nonfarm payrolls increased by 169,000 jobs, according to the Labor Department, falling short of the expected 180,000. However, average hourly earnings and the length of the average workweek both bounced back from weak July readings.

Political turmoil and violence in Egypt and Syria sent jitters through investors around the world.
In August, the Federal Deposit Insurance Corp. reported that U.S. bank earnings rose to a record-high $42.2 billion during the second quarter as trading income jumped and banks reduced the funds they set aside in case of losses.

FDIC Chairman Martin Gruenberg said his agency’s quarterly report showed continued improvement after the 2007-2009 financial crisis threatened banks’ health. Growth in bank revenue, however, is still sluggish, he said.

European stocks were up at mid-month on indications the continent’s long recession may be easing but hit rough weather late in August on concerns about Syria and uncertainty over the future of the Federal Reserve’s stimulus program. Banks and mining companies saw losses.

Also Tuesday, a report showed that the Ifo index of German business climate rose to a 16-month high of 107.5 in August from 106.2 in July. Economists had expected the index to tick up to 107.0

 
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