Quick note; “ISM metric strongly suggests that it is likely that the economy will enter recession no later than Q1 of next year, and possibly much sooner (but probably not now). more detail below July manufacturing and June construction spending: leading components of both are negative – by New Deal democrat As usual, the new […]
Weekly Indicators for July 25 – 29 at Seeking Alpha – by New Deal democrat My Weekly Indicators post is up at Seeking Alpha. There have been some interesting counter-trend movements in the indicators. For example, interest rates on mortgages have declined by more than 1% since their peak one month ago. Gas prices have declined by […]
Real income continued to fall in June, while consumers dug deeper to spend – by New Deal democrat In June personal income rose 0.6% nominally, and nominal spending rose 1.1%. The personal consumption deflator, i.e., the relevant measure of inflation, clocked in at 1.0%, meaning real income fell -0.4%, while real personal spending rose 0.1%. […]
Long leading indicators embedded in Q2 GDP suggest a recession is near at hand – by New Deal democrat Where does the economy go from here? If it’s not in recession, it isn’t doing much better. There are two components of GDP which are helpful in finding out what lies ahead: real residential fixed investment (housing) […]
Increasing trend in initial claims continues; on track to signal recession in November – by New Deal democrat Initial jobless claims declined 5,000 to 256,000 last week. But hold your celebrations, because that was because last week’s 251,000 was revised 10,000 higher! The 4 week average rose another 6,250 to 249,250, a nearly 8 month […]
First comments on Q2 GDP: no, we’re not in a recession (yet) – by New Deal democrat When the negative print on Q1 GDP first came out three months ago, I wrote: “yes, it was a negative GDP print. No, it doesn’t necessarily mean recession…. But the big culprits were non-core items. Personal consumption expenditures, even […]
New home sales continue to fall sharply, while prices for both new and existing homes continues to increase sharply New home sales declined further in June to 590,000 annualized and May was revised sharply lower as well: This was the lowest number since the pandemic lockdown month of April 2020, and before that since December […]
Weekly Indicators for July 18 – 22 at Seeking Alpha – by New Deal democrat I wasn’t able to get to this link yesterday, but my Weekly Indicators post is up at Seeking Alpha. The situation with the leading indicators continues to ever so slowly deteriorate. But there is some good news as well, as gas prices […]
Real retail sales decline again slightly – by New Deal democrat Nominal retail sales for the month of June rose 1.0%, and May was revised up by 0.2% from -0.3% to -0.1%. But since inflation was 1.3% in June and 1.0% in May, this makes the combined downturn in real retail sales -1.4% for the two […]
June industrial production: second sharp monthly decline in manufacturing – by New Deal democrat Industrial production declined -0.2% in June, and May was revised downward to unchanged. Even worse, manufacturing production declined -0.5% in June, and May was revised downward to -0.5% as well: This corresponds to the sharp deterioration in the regional Fed new orders […]