Economy

A daily index that tracks investor confidence fell six points on Friday to its lowest level in 2010 as fears of an economic slowdown continue to mount.

Friday’s drop in the Rasmussen Investor Index is 28 points below the high-water mark reached in May. The confidence level has not been that low since nearly a year ago, when the economy was considered to be in greater peril. 

Only 9 percent of respondents in the poll rated the economy as good or excellent, while another 55 percent said it is getting worse.

The index’s Friday reading was 77.5. Anything above 100.0 would indicate investor confidence is high.

The index reached a record high on Jan. 7, 2004, with a 150.9 reading. Its lowest reading was 52.5 on March 9, 2009. 

Sen. George LeMieux (R-Fla.) sent a letter to claims administrator Kenneth Feinberg on Thursday urging for a more streamlined process when paying those affected by the BP oil spill in the Gulf of Mexico.

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China is not manipulating its currency, but it remains undervalued, the Treasury Department said Thursday.

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Rep. Earl Pomeroy (D-N.D.), chairman of the Ways and Means subcommittee on Social Security, announced Thursday he will host a July 15 hearing on the entitlement program to discuss ways in which it can be strengthened.

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New jobless claims decreased by 21,000 last week, hitting their lowest level since early May and falling more than analysts expected.

Claims fell to a seasonally adjusted 454,000 for the week ending July 3, from the previous week's revised figure of 475,000, while forecasters expected a smaller drop, according to Labor Department figures released Thursday. 

The four-week moving average, which smoothes out the volatility of the weekly number and provides a better gauge of the employment situation, was 466,000, a decrease of 1,250 from the previous week's revised average of 467,250.

The numbers of Americans continuing to claim benefits took a big drop down by 224,000 to 4.4 million from the week ending June 26. 

Congress failed to pass an extension of unemployment benefits before leaving for the July 4 break, meaning more than 3.2 million people could lose benefits by the end of the month. 

About 2 million will have lost access to benefits beyond 26 weeks before lawmakers return from recess next week. 

Unemployment benefits should be considered emergency spending and paying for them isn't a likely option, a White House official said Wednesday. 

"I think this is a unique emergency that we believe should be addressed immediately," said White House spokesman Robert Gibbs. 

Senate Democrats and Republicans are at a stalemate over extending unemployment benefits to millions of Americans who have been out of work for more than six months. 

Lawmakers were unable to reach an agreement on an approximately $34 billion measure before leaving town for the week-long July 4 recess. Republicans are insisting on using stimulus to help pay for the benefits while Democrats have argued that, in the past, unemployment insurance has been extended without being offset by tax increases or the shifting of funds from other accounts. 

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An overwhelming majority (75 percent) of senior executives from U.S. companies with between $500 million and $3 billion in total revenues are optimistic about achieving their companies' growth expectations over the next two years, according to a new survey by the tax and consulting firm Ernst & Young LLP.

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Low mortgage rates boosted home refinancing applications to a 13-month high in early July, while the purchase index decreased 2 percent after the expiration of a federal tax incentive in April. 

The refinance gauge increased 9.2 percent from the previous week, hitting its highest level since May 15, 2009, according to data released by the Mortgage Bankers Association (MBA) on Wednesday. 

The seasonally adjusted purchase index decreased 2 percent from one week earlier, the eighth time in the past nine weeks. 

“For the month of June, purchase applications declined almost 15 percent relative to the prior month, and were down more than 30 percent compared to April, the last month in which buyers were eligible for the tax credit,” said Michael Fratantoni, MBA’s vice president of research and economics in a release today. 

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Consumer spending is running slightly ahead of 2009 levels but is still far below levels seen two years ago, according to a Gallup poll.

Americans reported spending an average of $67 per day in June at outlets such as stores, restaurants, gas stations and websites. That figure is a $5 decline from May but an increase of $6 from the same month a year ago, according to Gallup.

Discretionary spending during the first six months of the year has gradually improved while the economy has continued its slow expansion. But without significant job creation, it will be difficult to convince most Americans it’s time to start spending again.

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 A new study by the Federation for American Immigration Reform (FAIR) found illegal immigration costs governments $113 billion a year.

Cost estimates in the report, the Fiscal Burden of Illegal Immigration on U.S. Taxpayers, are based on an analysis of federal, state and local programs that are available to illegal aliens and their U.S.-born children. 

The study found states incur a majority of the $113 billion cost, with the federal government picking up only $29 billion.

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Taxes paid by illegal aliens amount to roughly $13 billion a year, but the study noted that this figure could be higher if more of them paid taxes.  

The study comes as the Justice Department announced it will sue Arizona over its controversial immigration law, saying it conflicts with federal law. 

The department seeks to delay implementation of the law, which is slated for July 29.

Arizona’s annual cost of illegal immigration is $2.5 billion a year, according to the study. 

FAIR advocates for restrictions on immigration.