Business Conditions

“Job openings fell but quits surged to a record in November. Enticing people back into the workforce could help ease supply problems and reduce upward pressure on prices.” ~ Robert Hughes

“Demand for manufactured goods remained strong in December. Production issues continue to restrain supply and sustain upward pressure prices, but there are early signs of progress on some issues.” ~ Robert Hughes

“New-home sales rose in November, but inventory also rose, and months’ supply remains relatively high. Rising prices, higher mortgage rates, and continued inventory build should lead to slower price increases.” ~ Robert Hughes

“New orders for durable goods rose, hitting the second-highest level on record while core capital-goods orders were just below a record high. Continued strength for business investment is a positive sign for the economic outlook.” ~ Robert Hughes

“Weekly initial claims for unemployment benefits are holding at an extremely low level. Labor shortages are likely to continue to hamper production across the economy, sustaining upward pressure on prices.” ~ Robert Hughes

“Existing-home sales rose in November and supply remains very tight. Shifting housing preferences are likely to continue to impact demand over coming months and quarters.” ~ Robert Hughes

“Consumer expectations improved in December, boosting overall consumer confidence. Continued expansion remains the likely course, but threats from waves of new Covid cases remain elevated.” ~ Robert Hughes

“Housing permits rose in November, offering some evidence that demand for housing may remain elevated. Rising home prices and potentially higher mortgage rates may be headwinds for demand while elevated commodity costs remain a challenge for homebuilder profits.” ~ Robert Hughes

“Weekly initial claims for unemployment benefits rose slightly from a multidecade low though the four-week average continued to trend lower. Combined with a near-record number of open jobs, the data show the labor market remains extremely tight. Labor shortages are likely to continue to hamper production across the economy, sustaining upward pressure on prices.” ~…

“Retail sales rose in November, hitting another record high and sustaining upward pressure on prices. However, there may be early signs of easing pressures in the not-too-distant future.” ~ Robert Hughes