Finance Highlights 2008 1118 - Laserfiche WebLink

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ECON©MIC R®UNDUP ! GHANbLER ®~ ASSET ,,,~f%'~ c MANAGEMENT CELEBRATIWG GUR 20TH YEAR CONSUMER PRICES In August, the CPI increased by 5.4% on a year-over-year basis, compared to July's 5.6% reading. The year-over- yearCore CPI (CPI less food and energy) rose at a 2.5% y- o-y rate. Although inflation readings remain elevated, lower energy prices and slowing economic growth should help inflation to moderate in the months ahead. RETAIL SALES In August, Retail Sales rose at ayear-over-year rate of 1.6°l0. Recently, consumers have slowed their spending in reaction to higher energy prices, the housing market contraction, and a general tightening of credit standards. The arrival of tax rebate checks helped mitigate this weakness somewhat, but the benefits of this one time stimulus are diminishing. HouSINCa START5 LABOR MARKETS Single-family housing starts declined by 1.9% in August, The September non-farm payroll employment report showed a to a 0.63 million annual pace, the lowest since March decrease of 159,000 jobs and the unemployment rate remained 1991. This follows July's reading of 0.64 million. The fall at 6.1 %. The payroll data reflected the ninth consecutive in housing starts is supporting the financial market month of negative job growth. September's employment concern that the decline in the housing market has not report reinforces the recent financial market concern about a yet run its course. slowing economy impacting the labor markets. CREDIT SPREACI5 MUCH WIDER 3-month top-rated commercial paper 2.64 1.01 1.63 2-year AA corporate note 1.50 1.14 0.36 5-year AA corporate note 1.67 1.41 0.26 5-year Agency note 1.12 0.92 0.20 Source: Bloomberg Data as of 9/30/08 ECCINI~MIC DATA Trade Balance (62.2) $Bln JUL 08 (58.3) $Bln JUNE 08 (59.1) $Bln JUN 07 GDP 2.8% JUN 08 0.9% MAR 0$ 4.6% JUN 07 Unemployment Rate 6.10% SEPT 08 6.10% AUG OS 4.70% SEPT 07 Prime Rate 5.00% SEPT 08 5.00%AUG 08 7.75% SEPT 07 CRB Index 345.5 SEPT 08 391.7 AUG 08 333.7 SEPT 07 Oil (West Texas Int.) $100.64 SEPT 08 $115.46 AUG 08 $81.66 SEPT 07 Consumer Price Index (y/o/y) 5.4% AUG 08 5.6% JUL 08 2.% AUG 07 Producer Price Index (y/o1y) 9.6% AUG 08 9.8%JUL 08 2.3%AUG 07 Dollar / EURO 1.41 SEPT 08 1.47 AUG 08 1.43 SEPT 07 Source: Bloomberg Data as of 9/30/08 ® 2008 Chandler Asset Management Inc, An fidependent Registered Investment Adviser The information contained herein was obtained from sources we believe to be reliable, but we do not guarantee its accuracy Opinions and forecasts regarding industries, companies, and/or the economy are all subject to change at any time, based on market and other conditions, and should not be construed as a recommendation. Page 4 CHANDLER ASSET MANAGEMENT ^ 9255 Towne Centre Drive, Ste 350 ^ San Diego, CA 92121 ^ 8~ 317 4747 ^ chandlerasset.com