Business Conditions

“Weekly initial claims for unemployment benefits rose to a three-month high, possibly impacted by the recent surge in new Covid cases. Regardless, the labor market remains very tight.” ~ Robert Hughes

“Housing activity was solid in December. However, rising home prices and higher mortgage rates may be headwinds for demand while elevated commodity costs remain a challenge for homebuilder profits.” ~ Robert Hughes

“Industrial output fell in December, but many industries are producing more now than prior to the pandemic. Still, it may take some time for materials shortages and logistical problems to be fully resolved.” ~ Robert Hughes

“Retail sales fell in December but remain at a high level, sustaining pressure on prices. However, there may be early signs of easing pressures as sales growth moderates and inventories rise.” ~ Robert Hughes

“Weekly initial claims for unemployment benefits rose to a two-month high, possibly impacted by the current surge in new Covid cases. Regardless, the labor market remains very tight.” ~ Robert Hughes

“Payrolls growth disappointed again in December. While the outlook is for continued recovery, difficulties hiring may restrain output growth, sustaining upward price pressures.” ~ Robert Hughes

“The services sector expanded for the 19th consecutive month in December. While shortages of labor and materials are continuing to restrain output and sustain upward pressure on prices, some data suggest some pressures may be starting to ease.” ~ Robert Hughes

“Weekly initial claims for unemployment benefits have stabilized at a low level while continuing claims reflect the end of emergency programs. The labor market remains very tight.” ~ Robert Hughes

“Light-vehicle sales fell again in December, but assemblies rose in November. Record low inventories continue but in a possibly positive sign, prices ticked down.” ~ Robert Hughes