Helped by strong aircraft orders, durable goods orders in August rose by 1.8% on the month, easily beating analyst estimates of 0.7%, according to Commerce Department data released Monday. The increase in new orders was even more remarkable as July’s reading was revised upward to an increase of 0.5% ... READ MORE >
coronavirus
Modeling the shock to the economy from a debt-ceiling crisis
The inability of the political sector to reach an equitable compromise on lifting the U.S. debt ceiling will come into sharp focus over the next few days. The federal government will exhaust its funding on Thursday, but can temporarily remain in operation because of special measures taken by the ... READ MORE >
Chart of the day: Canada’s retail sales cool amid bumpy recovery
Continuing what has been a volatile year for consumers, Canada’s retail sales decreased by 0.6% in July compared to June, according to data released on Thursday by Statistics Canada. The decline is just the latest swing in what has been an ever-changing consumer landscape amid uncertainty concerning ... READ MORE >
FOMC policy decision: Fed signals tapering is on the way
The Federal Reserve is planning to slow the pace of its $120 billion in monthly asset purchases even as it keeps its policy rate at zero, it suggested in its policy statement released on Wednesday. The statement came as the central bank is split on whether to begin raising rates late next year or in early ... READ MORE >
Bank of England’s Monetary Policy Committee to focus on economic risk as energy prices surge
Rising energy prices will weigh on consumer spending and gross domestic product growth in the U.K. next year. At its meeting on Thursday, the Bank of England’s Monetary Policy Committee should be more concerned about the negative impact on the economic recovery from soaring energy prices than about the ... READ MORE >
Chart of the day: Sales of existing homes drop amid high prices
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 ... READ MORE >
Home builders, facing shortage of materials, can’t meet soaring demand
Even as the housing market continues to lead the economic recovery in the United States, home builders, whipsawed by more than a year of dramatic changes fueled by the pandemic, are facing new pressures as they try to meet surging demand. Already, builders have been scrambling to find enough workers to ... READ MORE >
FOMC meeting: Prelude to tapering amid global financial turbulence
Monetary policy is always a difficult judgment call. Balancing growing global risk aversion, domestic political turmoil and general uncertainty around the underlying condition of the real economy make this week’s Federal Open Market Committee policy decision a bit more challenging than what many ... 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 ... 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 ... READ MORE >