Industrial production set another record in April, defying recession concerns in equity and fixed-income markets. The Federal Reserve's index for industrial production volume rose by 0.8%, the fourth consecutive month of strong expansion, the report showed. All major industries posted gains, a sign of ... READ MORE >
U.S. retail sales: A solid month of growth
American consumers continued to spend more at retail stores in April despite inflation as lower gasoline prices helped to boost spending on discretionary items. But it won't last long as gasoline prices reached a record high in May. Retail sales in the United States rose by 0.9% in April from a ... READ MORE >
Why excess labor demand is unhealthy
The labor market’s rebound from the pandemic has been nothing short of remarkable. Most of the staggering number of job losses have been recovered, and the unemployment rate is near its pre-pandemic low. But sometimes in economics there can be too much of a good thing. In this case, it’s the demand for ... READ MORE >
RSM US Supply Chain Index: Bracing for more disruptions
Supply chain bottlenecks eased in March, but it won't be for long. Widespread lockdowns in China and prolonged geopolitical conflict in Ukraine will most likely assure another round of supply chain snarls ahead. Our RSM US Supply Chain Index rose 4.5% to 2.76 standard deviation below neutral. The ... READ MORE >
Chart of the day: Manufacturing grew at a slower rate in April
Manufacturing grew at a slower rate in back-to-back months as labor shortages continued to hamper production while demand moderated from January's high. The Institute for Supply Management's manufacturing index registered 55.4%, the slowest growth rate since July 2020, and down from 57.1% in March. An ... READ MORE >
Consumers spent more in March despite rising inflation
American consumers defied rising inflation and market uncertainties in March, continuing to spend more on goods and services as their wages increased and they saved less. Personal spending rose by 0.2% in March on an inflation-adjusted basis, following an upwardly revised 0.1% increase in February. The ... READ MORE >
Chart of the day: Initial jobless claims ease amid tight labor market
New claims for jobless benefits fell by 5,000 last week to 180,000 as labor demand continued to be robust and layoffs remained historically low. This marked the 13th week in a row that new jobless claims stayed below the pre-pandemic level in 2019 at 214,000. Our long-term measure that strips out ... READ MORE >
Pending home sales fell back to pre-pandemic level amid rising rates
U.S. pending home sales fell 1.2% in March, declining for the fifth month in a row, as demand continued to slow due to high home prices and rising mortgage rates. The National Association of Realtors' index for pending home sales is a proxy for future sales of existing homes as about 80% of pending ... READ MORE >
Consumer confidence declines slightly as new home sales fall 8.6%
Consumer confidence eased in April even as expectations for the next few months improved, the Conference Board reported on Tuesday. The consumer confidence index was down slightly in April, to 107.3 from 107.6 in March, remaining below the pre-pandemic level. The index, well known for its ... READ MORE >
Durable goods orders bounced back in March
Orders for durable goods bounced back in March despite interest rate hikes and supply shocks from geopolitical conflict. The top-line durable goods orders increased by 0.8% in the month following February’s upwardly revised figure of a 1.7% decline, according to a report from the U.S. Census Bureau on ... READ MORE >