Business Conditions

“Light-vehicle sales fell again in July, falling farther below the recent range. A semiconductor shortage continues to disrupt production causing inventories to plunge and prices to jump.” – Robert Hughes

“Manufacturing demand remains robust, while labor, production, and logistical issues continue to pressure prices.” – Robert Hughes

“The U.S. economy posted another strong quarter of growth, led by consumer spending. The outlook remains favorable but the Delta variant, accelerating consumer price increases from material shortages, labor and logistical issues, and potential changes to monetary and fiscal policies are keeping uncertainty elevated.” – Robert Hughes

“Consumer attitudes remained at favorable levels in July as easing government restrictions continue to boost economic activity and job prospects.” – Robert Hughes

“Manufacturers’ new orders for core capital goods hit another record high in June. The strong showing is a positive sign for the overall outlook.” – Robert Hughes

“New-home sales fell again in June and supply conditions eased a bit. Rising prices, and somewhat higher mortgage rates should continue weighing on activity.” – Robert Hughes

“Existing-home sales rose slightly in June while record-high prices and changing preferences work to cool the recent pace of activity.” – Robert Hughes

“Weekly initial claims for unemployment benefits jumped in the latest week and may suggest a temporary plateau. A tight labor market and a record number of open jobs should continue to drive initial claims lower, but the Delta variant is increasing uncertainty.” – Robert Hughes

“Home construction activity showed further signs of cooling in June. The combination of a reopening economy that may be reversing pandemic-related housing preferences and rising single-family home prices appear to be dampening demand while labor difficulties restrain supply.” – Robert Hughes

“Retail sales rose in June with broad gains among the categories. Solid consumer fundamentals suggest a positive economic outlook, though upward pressure on prices is a growing risk for consumer sentiment and consumer spending.” – Robert Hughes