Business Conditions

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

“New orders for core capital goods rose again, hitting another record high. Continued strength for business investment is a positive sign for the economic outlook.” ~ Robert Hughes

“Weekly initial claims for unemployment benefits fell to a multidecade low, though seasonal adjustment difficulties may have played a role. Regardless, the labor market remains very tight.” ~ Robert Hughes

“Existing-home sales rose in October, driven by the single-family segment, as prices continue to rise. Shifting housing preferences may continue to influence activity over coming months and quarters.” ~ Robert Hughes

“Weekly initial claims for unemployment benefits continue to fall, but at a slower pace as they approach pre-pandemic levels. The tight labor market and strong demand will likely keep claims at low levels.” ~ Robert Hughes

“Housing permits rose in October, 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 may pressure homebuilder profits.” ~ Robert Hughes

“Industrial output rebounded in October as the effects of Hurricane Ida faded and motor vehicle production jumped. It may take some time for materials shortages and logistical problems to be fully resolved, but October was a positive sign for the outlook.” – Robert Hughes

“Retail sales rose in October, hitting a new record high. Resilient consumer spending is a positive for the outlook but also sustains upward pressure on prices.” – Robert Hughes

“Job openings fell back slightly but remain very high as quits continue to surge. Overall, the outlook is for economic growth, but headwinds remain.” ~ Robert Hughes

“Consumer sentiment fell in early November as consumers react to rising prices for many consumer goods and divisions along political lines regarding economic policies. Both are negative developments for the economic outlook.” ~ Robert Hughes