U.S. Jobs Data Better Than Expected, but Stocks Report Dismal Week

The U.S. Bureau of Labor Statistics reported that total nonfarm payroll employment rose by 117,000 in July, which was a higher number than economists expected. Job gains occurred in health care, retail trade, manufacturing, and mining. Government employment continued to trend down. July’s unemployment rate was little changed at 9.1 percent, down from 9.2 percent in June.

Buoyed by positive news from Europe that addressed investor concerns, the Dow Jones industrial average at the close on Friday was up 60.93, or 0.54 percent, to 11,444.61M, a day after plunging 512.76 points. But the broader Standard & Poor’s 500-stock index was off less than a point to 1,199.38. The Nasdaq composite, meanwhile, was down 23.98 points, or 0.94 percent, to 2,532.41.

Although the jobs report was cheerier than expected, manufacturing in July reportedly fell to its lowest level since July 2009. The Institute of Supply Management’s factory index fell to 50.9 in July, from 55.3 in June, lower than the 54.5 decline forecasted by the Bloomberg News survey of 80 economists. Figures less than 50 indicate a contraction.

The Commerce Department reported that consumer spending fell 0.2 percent in June, which was the first decline since September 2009. Incomes rose 0.1 percent. Other data were more positive—motor vehicle sales rose to a 12.2 million annual rate in July from 11.4 million in June; borrowing by small businesses in the country rose in June to the highest level in more than three years; and inflation appears to be under control.

Public and private institution construction in New York City fell 27 percent to $3.2 billion in the 12 months ending May 2011, according to McGraw-Hill Construction Dodge data. Since May, however, construction on two new projects began—the Whitney Museum, a $600 million project near the High Line, and Fordham University, a $250 million multi-use facility at its Lincoln Center campus. Commercial and residential construction projects aren’t included in the data.

Major retailers are planning store openings on Fulton Street in Brooklyn including H&M, Aldo, Aeropostale, Filene’s Basement, the Gap, and Shake Shack. In addition, the city’s Economic Development Corp. will soon select a developer for the Brooklyn Municipal Building project, which will bring 37,000 square feet of retail space to the first two floors of the building located at Court and Joralemon Streets. Also downtown, Muss Development Co., developers of the Marriott, is seeking restaurants and retailers for 345 Adams Street. For its population, Brooklyn is under retailed, with 11 square feet of retail per person, compared to the national average of 36 square feet per capita.