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 ... READ MORE >
Delta variant
Initial jobless claims rise in the wake of Hurricane Ida
The economic impact of Hurricane Ida was evident in the most recent initial jobless claims data, which rose to 332,000 for the week ending Sept. 11. There were noticeable increases in first-time claims, as one would expect, in New York, Pennsylvania, Connecticut, Louisiana and Alabama, according to ... 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 ... 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, ... READ MORE >
Consumer Price Index: Inflation eased in August, but it’s too soon to declare victory
Score a victory for team transitory in the inflation wars. The Consumer Price Index eased in August, reaffirming our view that inflation most likely formed a peak in the summer following the historic supply shock that defined pandemic economics starting last year. Top-line inflation eased to 5.3% on a ... 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 ... READ MORE >
Chart of the day: How the enhanced child tax credit expands outlays on food, shelter and books
A survey by the U.S. Census Bureau adds to the argument that direct payments to households are the most efficient way to help families in need. The recent innovation in the child tax credit—taking half of it and turning it into six lump-sum payments over the course of a year—has yielded some ... 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' ... READ MORE >
Initial jobless claims fall to 310,000, but expect volatility in the coming weeks
First-time claims for unemployment benefits declined to 310,000 for the week ending Sept. 4, down from 345,000 the week before and well below the 13-week moving average of 377,000. Continuing claims increased to 2.783 million for the week ending Aug. 28. Overall, those receiving some form of ... READ MORE >
Avoiding a COVID-19 pandemic among children
New weekly COVID-19 cases in children hit record levels the week of Aug. 26 in the United States, representing 22% of the total cases that week, according to the American Academy of Pediatrics. Hospitalizations of children from the virus have been rising as well, and now comprise between 2% and 4% of the ... READ MORE >