Free Republic

The final reading for September showed that sentiment rose to 59.4 from 55.7 in August, which was the lowest level since November 2008. A preliminary reading released earlier this month estimated a sentiment level of 57.8 for September. With stock volatility and weak employment maintaining downward pressure on sentiment, economists polled by MarketWatch had expected a slight rise to 57.6 in September.

...The Chicago purchasing managers index rose to 60.4 from 56.5 in August. The rise was unexpected. Analysts were looking for a slight decline. Readings over 50 indicate overall business expansion...

Income fell a seasonally adjusted 0.1% in August, which was the first decline since October 2009... Consumer spending increased a seasonally adjusted 0.2% in August, down from a revised 0.7% gain in July...Economists surveyed by MarketWatch expected a flat reading in income and a 0.1% gain in spending... The core personal consumption expenditure price index was up 0.1% in August, below economist expectations of a 0.2% gain

Less than 10 days after the Federal Reserve announced a reprise of the “Operation Twist“ strategy it first used half a century ago, mortgage rates are at all-time lows. Operation Twist is the Fed’s plan to squeeze the long end of the yield curve by buying long-term Treasurys instead of short-term ones — in other words, increasing demand and lowering the rates for long-term borrowing.

Average rates on fixed-rate mortgages hit record lows this week, with the 30-year fixed-rate mortgage averaging 4.01%, according to Freddie Mac’s weekly survey of conforming mortgage rates. “Fixed mortgage rates fell to all-time record lows this week following the Federal Reserve’s announcement of its Maturity Extension Program and additional purchases of mortgage-backed securities,” said Frank Nothaft, vice president and chief economist of Freddie Mac, in a statement.

...The Kansas City Fed's manufacturing composite index increased to 6 in September from 3 in August. Readings above zero indicate expansion... The rest of the story from the KC Fed: The production index rose from -2 to 3, and the shipments, new orders, and order backlog indexes also edged up. The employment index increased for the second straight month, but the new orders for exports index fell slightly after rising last month. Both inventory indexes increased somewhat. The shipments, order backlog, and new orders for exports indexes all rose slightly, and the capital expenditures index increased to its highest level...

Top business executives feel less confident about the U.S. economic outlook and their ability to hire new workers than in previous quarters this year, according to a survey released Thursday by Business Roundtable. Only 36% of chief executives thought their company's U.S. employment would increase in the next six months and 24% thought it would decrease, according to a survey of 140 chief executives conducted by Business Roundtable between Aug. 29 and Sept. 16. By contrast, in the second quarter poll, 51% of executives thought their company's U.S. employment would increase and only 11% thought it would decrease.

The pending sales index of existing U.S. homes fell 1.2% to 88.6 in August...

The U.S. economy expanded at a slightly faster pace than previously thought in the second quarter of 2011, led by a pickup in consumer and construction spending, government data showed Thursday. Gross domestic product rose at an annual rate of 1.3% in the second quarter, the Commerce Department said. The rate of GDP growth was faster than the government’s prior reading of 1.0%.

New applications for unemployment benefits sank by 37,000 last week to 391,000 to mark the lowest level since April, but a government official suggested the surprising drop may have stemmed from a variety of "technical" issues...

WASHINGTON (MarketWatch) — Orders for U.S. durable goods fell slightly in August as demand shrank for motor vehicles and certain large defense goods, the government reported Wednesday. Bookings for U.S.-made products designed to last at least three years dipped 0.1% in August after a 4.1% gain in July, the Commerce Department said. Economists surveyed by MarketWatch had expected orders to rise by 0.4%.

Manufacturing activity in the central Atlantic region contracted at a less pronounced rate this month, according to the Richmond Fed's latest survey. Looking at the main components of activity, employment grew at a slightly quicker rate, while shipments exhibited more moderate weakness and new orders slipped further into negative territory. Evidence of diminished weakness was also reflected in most other indicators. District contacts reported that backlogs, capacity utilization, and delivery times remained negative but improved from August's readings. Manufacturers reported somewhat quicker growth in finished goods inventories. Looking forward, manufacturers' assessments of business prospects for the next six months were...

As expectations slightly gained, consumer confidence ticked higher in September while remaining at low levels, the Conference Board reported Tuesday. The nonprofit organization said its consumer-confidence index rose to 45.4 in September from 45.2 in August, when it had plunged on worries about jobs and the U.S. debt, among other factors... Economists surveyed by MarketWatch had expected a September reading of 46.1...The August confidence reading was upwardly revised from a prior estimate of 44.5.

U.S. home prices in July rose for the fourth straight month, according to data released Tuesday, helped by seasonal factors as well as tentative if halting signs of improvement in housing demand. The S&P/Case-Shiller 20-city home price index rose 0.9% compared to June, to narrow the year-on-year decline to 4.1%.

It’s a little election with some potentially momentous consequences... Voters in the Hawkeye State’s Senate District 18 will head to the polls Nov. 8 for a special election that the Democrats must win to hang onto their last vestige of political power in state government. They hold just a slim 25-24 Senate majority and the District 18 seat is up for grabs after Republican Gov. Terry E. Branstad, in a move that he denies was politically motivated, nominated Democratic state Sen. Swati Dandekar from Marion earlier this month to a $137,000-a-year post on the Iowa Utilities Board.

<p>The production index—a key measure of state manufacturing conditions—rose from 1.1 to 5.9, suggesting growth picked up this month after stalling in August.</p> <p>Positive readings in the survey generally indicate expansion of factory activity, while readings below zero generally indicate contraction.</p>

Sales dropped 2.3% last month to an annual rate of 295,000, the lowest level since February, the Commerce Department said Monday. After peaking in 2011 at 316,000 in April, new-home sales have gradually declined... The average sales price of a new home, meanwhile, sank 8.7% to $246,000, the lowest level since January 2009.

Thursday that he is dropping out of the 2012 presidential race. McCotter, who struggled to gain traction against better-financed rivals and failed to achieve the necessary support to be invited to Republican debates, announced that he would now support former Massachusetts Gov. Mitt Romney in the Republican primary.

WASHINGTON (MarketWatch) — The Federal Reserve on Wednesday, acting in the face of a weak economic outlook, decided to start a program to twist the yield curve by swapping shorter-maturity government securities for longer-dated ones. In a statement, the Fed will buy $400 billion of Treasury securities in the 6-30 year range and sell an equal amount of maturities of 3 years or less. The Fed also announced a new plan to purchase agency mortgage-backed securities with proceeds of maturing securities.