Existing home sales in August inched down by 2.0% to 5.88 million, following an upwardly revised 6.00 million in July, according to a report released Wednesday by the National Association of Realtors. The new data continued to point to signs of deceleration in the housing market, but it is still a hot market driven by strong demand. The unsold home ... READ MORE >
Government deficit widens in August as battle over debt ceiling heats up
As another showdown over raising the nation’s debt limit looms, the U.S. budget deficit in August reached $170.6 billion, widening the total deficit in the first 11 months of the 2021 fiscal year to $2.711 trillion. The deficit was 14.7% lower than the budget gap a year ago, which was at $200 billion as revenues increased by 20.2% and outlays rose by only ... READ MORE >
Buy later, pay later: Consumers postpone purchases amid high prices
The University of Michigan Consumer Sentiment Index rose slightly to 71.0 in September, following a nine-year low of 70.3 in August as consumers felt the impact of the delta variant and rising prices. The report, released on Friday, signals a temporary shift in spending as consumers delay purchases of homes and big-ticket items like vehicles and ... READ MORE >
As the delta variant spread, worried consumers went online to do their shopping
The strong retail sales for August were not only a welcome surprise for retailers after months of decline, but they also showed the enduring impact of the pandemic as consumers relied less on human contact and increasingly shopped at home. Non-store spending—which includes spending at online retailers—led the overall 0.7% increase in August retail ... READ MORE >
Chart of the day: Strong back-to-school retail sales may signal positive holiday season
In what retailers hope is a preview of the holiday shopping season, retail sales from the critical back-to-school month of August increased by 0.7% on the month, according to data released by the U.S. Census Bureau on Thursday. When autos are excluded, that gain was a robust 1.8%. The August figure easily beat the Bloomberg consensus forecast of a 0.8% ... READ MORE >
Import prices dropped below expectation in August, but prices from Asia remained hot
The U.S. import price index decreased by 0.3% in August, the first decline since October 2020, following an upwardly revised 0.4% increase in July, while the core index, which excludes petroleum, fell by 0.1%, according to data released Wednesday by the Bureau of Labor Statistics. The monthly decline also contributed to the smallest 12-month increase in ... READ MORE >
Chart of the day: Small business optimism inched up in August, yet hiring struggles remained
The small business optimism index increased slightly to 100.1 in August, rising by 0.4 points over July, even as employers struggled to fill job openings. Half of the firms surveyed by the National Federation of Independent Business reported positions that they could not fill in the current period, much higher than the historical average of 22% over the ... READ MORE >
Global supply chain disruptions accelerate, presenting a challenge to the middle market
Fragile global supply chains are facing another round of port closures, factory shutdowns, production halts and labor shortages as the delta variant spreads. These disruptions will almost certainly delay the return of full production in the global economy until the middle of next year and create the conditions for further price volatility until the ... READ MORE >
Chart of the day: Producer Price Index decelerated in August
The headline Producer Price Index increased by 0.7% in August, a slower pace than the 1.0% monthly gains in June and July, while the core index excluding food and energy rose by 0.6%, according to government data released Friday. The lower numbers indicate that inflation, at least from the sellers' perspective, has most likely passed its summer ... READ MORE >
CHART OF THE DAY: Job openings set another record at 10.9 million in July
Job openings in the United States reached a record 10.9 million in July, continuing to show that the demand for workers remains strong while employers struggle to fill job vacancies. New hires inched down to 6.7 million and job separations were little changed, at 5.8 million, according to Labor Department data released on Wednesday. Job openings—a ... READ MORE >