England and the European Union had agreed to an 11-month window ending Dec. 31 to produce what would normally take years of trade negotiations. If those talks were to fail, then England will face tariffs imposed by the E.U., its largest trading partner, once it is pushed out. … READ MORE >
Coronavirus
CHART OF THE DAY: Middle market retailers pay close attention to inflation as pandemic progresses
Many RSM clients have reported that inflation has been, and continues to be top of mind for them. The data supports what we’ve heard. Throughout the pandemic, the cost of food at home has been the mirror image of the Consumer Price index. … READ MORE >
Pandemic economics: Prospects for permanent job losses rising
There has been an alarming increase in permanent job losses over the past six months. Whether and when those jobs reappear will determine the extent of the damage to the economy and, more important, the extent to which household balance sheets and accumulated wealth are impaired. … READ MORE >
August U.S. employment report: Strong hiring continues for fourth month
The return of workers to their jobs continued at a strong pace in August, with 1.371 million jobs added, including 238,000 temporary census workers. … READ MORE >
Methodological changes to jobless claims data are behind their slower pace
First-time jobless claims declined to a seasonally adjusted rate of 881,000 for the week ending Aug. 29, with non-seasonally adjusted claims falling to 833,000 as the Department of Labor introduced a new way to estimate the pace of firings in the domestic labor market. … READ MORE >
Government services: Emerging trends from industry executives in the second quarter
While the federal government is a reliable customer to serve amid a raging pandemic, federal contractors were not fully immune to COVID-19’s disruptions. Top executives in the government services space highlighted opportunities, headwinds and strategic initiatives in their second-quarter earnings calls, … READ MORE >
CHART OF THE DAY: Consumers upgrade groceries in lieu of restaurant meals as pandemic continues
In July and August, specialty food retail sales grew to 30.6% and 28.1% of pre-pandemic levels, respectively, outpacing categories that saw strong sales growth in March 2020. With consumer packaged goods giants reducing their offerings to focus on replenishing core products, and grocers softening on in-store promotional requirements, there are plenty of opportunities for innovative brands to capture market share. … READ MORE >
Chart of the Day: Consumer confidence falls to six-year low
The Conference Board’s measure of consumer confidence fell to its lowest level in six years in August, underscoring uncertainty amid high unemployment in a U.S. economy that has faced pandemic-driven stops and starts since mid-March. … READ MORE >
Fintechs helped with the Paycheck Protection Program. Why not the Main Street Lending Program?
Fintechs played an important role in helping the Paycheck Protection Program gain broad acceptance. Now, fintechs could do the same in the Main Street Lending Program — if, that is, the government makes some prudent changes to the program. … READ MORE >
COVID-19 stifles middle market private equity dealmaking
With reduced dealmaking, private equity firms are left to prioritize their existing portfolio investments and must measure the continuing uncertainty created by the pandemic. … READ MORE >