Weekly U.S. Economy Update (10 June 2018)
June 10, 2018
5 Min Read
Here’s our view on this week’s data releases relating to the U.S. economy.
The most important economic data releases for the week commencing 10 June 2018:
Tuesday- Consumer Price Index (consensus exp. 0.2%)Wednesday- Fed Interest Rate Decision (Consensus exp. 2%)Thursday- Retail Sales (Consensus exp. 0.3%)Employment has continued to grow with the non-farm payrolls figure showing 223K jobs added in May and the unemployment rate falling to 3.8%. However, finding workers is becoming an increasing concern with businesses unable to fill a record number of open positions. This is leading to an increase in wages.Consumer confidence remains high, with those expecting their income to fall at the lowest rate since December 2000. Confidence remains high that the economy will continue to grow in the months ahead. However, consumers are beginning to worry about higher prices worsening their financial situation.House prices have been continuing to grow, but at a slower pace more recently, while new home sales and existing home sales have been beginning to fall. For the last week of May mortgage applications grew by 4.1%, the first positive reading in six weeks.In manufacturing, inflationary pressures continue to intensify as input prices grow following strong demand for raw materials. New business has continued to outstrip output, leading to an increase in back-orders. Businesses are struggling to expand, partly blaming difficulties in finding skilled labour. Logistics and supply chains are overstretched leading to longer delivery times.Click here to check out our economics courses and resources.