No Signs Yet of Spring in the Housing Market · Data on home sales released this week show that the housing market continues to face a number of challenges. Existing home sales fell for the third straight month, while new-home sales tumbled 14.5 percent. · Despite weakness in sales, home prices continue to climb higher […]
Continue ReadingSignals of Stronger Economic Growth Return · Retail sales for March climbed 1.1 percent following an upwardly revised 0.7 percent reading for February, signaling that consumer spending was not as soft as first expected to start the year. · Housing starts rose for the second consecutive month in March, posting a 2.8 percent increase. Building […]
Continue ReadingBroad Gains, but Where Are the Skilled Workers? · There were broad improvements in the economic data this week, with more optimism among small businesses, lower jobless claims and expanding consumer credit. However, according to the NFIB and JOLTS, a number of employers cannot seem to find qualified workers. · Fed minutes revealed a slightly […]
Continue ReadingA Broadening Recovery Offsets Near-Term Weakness · Nonfarm payrolls increased across most industries in March, signaling that the recovery is broadening and likely gaining momentum as payrolls rose by 192,000. · The unemployment rate was unchanged at 6.7 percent but the labor force participation rate and employment-population ratio both increased. · Reports on manufacturing, motor […]
Continue ReadingHanging in There · Stronger consumer spending on services led the third estimate of fourth-quarter GDP higher to a 2.6 percent annualized rate. Real final sales increased at a 2.7 percent annualized rate, the fastest pace since the start of 2012. · After a jump in January, new home sales fell back to a 440,000-unit […]
Continue ReadingA Few Hints That Weather Effects Are Fading · Industrial production bounced back a sizable 0.6 percent in February after posting a 0.2 percent decline in January. · Consumer prices rose a slight 0.1 percent in February, as energy prices pulled back on the month. The CPI is now up just 1.1 percent over last […]
Continue ReadingIs That Spring in the Air? · Retail sales rebounded after two straight months of declines, providing much-needed optimism to a dreary winter of economic data. · Several indications of a skills mismatch in the labor market have come up, with construction proving particularly problematic. · The FOMC meets next week and is expected to […]
Continue ReadingStill on Track · Nonfarm payrolls rose by 175,000 in February as employers looked past the nasty weather of late. The unemployment rate ticked up to 6.7 percent as an increase in the labor force overshadowed household employment gains. · The ISM manufacturing index bounced back a bit in February, although activity remains decidedly weaker […]
Continue ReadingYellen at the Senate, While Weather Still Skews Data · As expected, GDP growth was revised lower, reflecting a slower build in inventories, a weaker trade position and a more cautious consumer. · Chair Yellen’s Senate testimony indicated a continuation of current monetary policy, although the course could change if weak data turns out to […]
Continue ReadingWeather Effects Continue to Influence Economic Data · Housing starts plunged 16 percent in January to an 880,000-unit pace. Building permit activity also declined for the month but not as sharply. · Inflation indicators continued to reflect subdued price pressures on businesses and consumers. The new producer price final demand index rose a modest 0.2 […]
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