A look at one of our preferred measurements of inflation expectations implies that the risk of a sustained outbreak of inflation is receding just as another set of inflation data—the Consumer Price Index for June—is about to be published on Tuesday. … READ MORE >
CHART OF THE DAY: Improving labor market signals increased consumer confidence and spending
The steady drop in unemployment claims this year coincides with a steady increase in consumer confidence, as seen in the Langer Research Consumer Comfort Index. … READ MORE >
The rebirth of industrial policy in the United States
The U.S. Innovation and Competition Act of 2021, a $250 billion legislative package passed in June to facilitate the research and development of science and technology, represents a sea change in U.S. economic strategy and a return of the government’s use of industrial policy. But the embrace of industrial policy to solve economic and strategic problems carries with it considerable possibilities and risks. … READ MORE >
Initial jobless claims imply that ending benefits does not improve employment numbers
First-time claims inched higher by 2,000, to 373,000, for the week ending July 3 from an upwardly revised 371,000 for the week ending June 26, according to the Labor Department. … READ MORE >
CHART OF THE DAY: May was another good month for the labor market
The Job Openings and Labor Turnover Survey suggests that American workers are enjoying a moment when work is plentiful and firms appear willing to meet demand for higher wages. … READ MORE >
Economic update: GDP to grow above 7% this year as expansion takes hold
The American economy will continue to boom in the second half of the year following what we expect will be 7.8% growth through the first six months. … READ MORE >
June jobs report: Let the good times roll
The U.S. economy generated a robust 850,000 jobs in June while at the same time the unemployment rate advanced to 5.9% amid an increase of 151,602 workers in the labor force, according to government data released Friday. … READ MORE >
Initial jobless claims resume their downward trend, falling to 364,000
Initial jobless claims declined to 364,000 for the week ending June 26, resuming their downward trend following a few weeks of flat to down readings. … READ MORE >
CHART OF THE DAY: Consumer confidence is sign of good things to come
The Conference Board’s Consumer Confidence Index increased to 127.3 from a revised up 120 in May. The topline index is traditionally interpreted as a forward-looking indicator of consumer spending and is very sensitive to employment conditions. … READ MORE >
RSM Manufacturing Outlook Index: New orders, sales and sentiment imply economic expansion has begun
Surveys of manufacturers conducted by six regional Federal Reserve banks reflect robust confidence in the outlook for manufacturing, despite being tempered by supply chain bottlenecks and price increases. … READ MORE >