American households are consuming less gasoline compared to this time last year as fuel costs continue their relentless rise. Now, with the traditional summer driving season underway, these costs have reached a tipping point, forcing many households to reduce their spending on necessities and ... READ MORE >
inflation
Law firms are feeling pressure despite steady growth in demand and rates
Law firms are holding on tight to the roller coaster that is 2022. In November 2021, RSM explained that law firms were not guaranteed another profitable year despite strong demand and rate increases. Fast forward to May, when the Thomson Reuters Law Firm Financial Index (LFFI) for the first quarter of ... READ MORE >
Travel industry, expecting busy summer, casts wary eye on inflation
This summer was supposed to be the season of revenge travel. With COVID-19 caseloads easing and consumers flush with savings built up during the pandemic, the travel industry was anticipating a robust season. Consumers were so eager to get out of the house that little could deter them, the thinking ... READ MORE >
Fed announces largest rate hike in nearly three decades as it seeks to restore price stability
The Federal Reserve lifted its federal funds policy rate to a range between 1.5% and 1.75% on Wednesday as it moves to restore price stability over the medium term. We now expect the Fed to hike the policy rate by 50 basis points in July and September and then by 25 basis points at each successive ... READ MORE >
U.S. retail sales fall as inflation takes a toll
U.S. retail sales declined in May as surges in energy and food prices forced consumers to reduce their spending on vehicles and other discretionary items. With inflation running hot, sales plunged on an inflation-adjusted basis, paring most of April's gains. That implies more headwinds to consumer ... READ MORE >
Chart of the day: U.S. producer inflation remained elevated
Producer inflation remained elevated in May, even as the overall year-over-year number eased slightly, according to Labor Department data released on Tuesday. The report adds pressure on the Federal Reserve, which is meeting this week and considering more aggressive measures to tame inflation. We now ... READ MORE >
U.S. May CPI: Inflation continues to broaden out on higher gas and housing costs
Inflation continued to broaden out across the American economy in May, rising by 8.6% annually and underscoring the urgency among central bankers to restore price stability through an increase in the federal funds rate and a drawdown in its $8.9 trillion balance sheet. Six months into the Federal ... READ MORE >
Inflation and gross margins—who is winning? Part 1: The transportation sector
RSM took a detailed look at gross margins across different peer groups in the industrials sector to see how each has fared during this time of high inflation. In this article—part of a series—we examine margins for the transportation sector. Here is what we found. The industrials sector played a ... READ MORE >
Chart of the day: Consumer confidence falls in May
Consumer confidence in the United States slid to a three-month low in May amid sticky inflation and a decline in job availability. With both factors likely to persist, we expect confidence to remain on a rocky path over the next couple of months. The Conference Board's Consumer Confidence Index inched ... READ MORE >
Personal spending and trade improved in April as inflation eased
American consumers continued to spend more in April as inflation showed signs of relief. The combination of higher incomes, excess savings and lower energy prices helped to alleviate some of the recent recession concerns. On top of that, the advanced goods trade deficit improved significantly on ... READ MORE >