Publications

U.S. Economic Indicators

Existing home sales rose 0.7% to a seasonally adjusted annual rate of 6.8 million in December and were up 22.2% compared to a year ago. Home sales increased in the Northeast and the South on a month-on-month basis while sales increased significantly on a year-on-year basis in all four major regions. NAR Report

U.S. News

The Wall Street Journal reports that prices for corn, soybeans, and wheat have soared to their highest levels in more than six years as dry weather and strong export demand from China draw on U.S. inventories. The rising commodity prices are driving a sharp increase in farm income but may also lead to a spike in consumer food prices. WSJ

U.S. Economic Indicators

Initial jobless claims decreased 26,000 to 900,000 last week. The four-week moving average increased 23,500 to 848,000. DOL Report

Privately-owned housing starts increased 5.8% in December to a seasonally adjusted annual rate of 1.67 million (up 5.2% year-over-year). Housing permits rose 4.5% to a 1.71 million annual pace (up 17.3% from last year). Census Bureau Report

U.S. News

The Washington Post reports that President-elect Biden is set to nominate Rohit Chopra, an Obama-era regulator and colleague of Senator Elizabeth Warren, to lead the Consumer Financial Protection Bureau. Combined with last week’s indication that Biden will tap Gary Gensler to run the SEC, the choice of an outspoken industry critic for head of the CFPB may signal the incoming administration’s intent to press for more aggressive enforcement of financial sector regulations. WaPo

The Wall Street Journal reports that today’s confirmation hearing for Treasury Secretary nominee Janet Yellen included her remarks on the need for lawmakers to “act big” to avoid further economic damage to American workers and small businesses. Yellen also affirmed the Treasury’s commitment to market-determined exchange rates and acknowledged bipartisan concern over the growing national debt. WSJ

U.S. Economic Indicators

The headline Producer Price Index (“PPI”) for final demand rose 0.3% in December and is up 0.8% year-over-year. The core – which removes the volatile prices of food, energy, and trade services – rose 0.4% in December and is up 1.1% year-over-year. BLS Report

The University of Michigan Consumer Sentiment Index dropped 1.5 points to 79.2 in the preliminary January reading and is down 20.6 points from January of last year. The Index of Consumer Expectations fell 0.8 points to 73.8, while the Current Economic Conditions Index fell 3.3 points to 87.7. University of Michigan

Retail sales fell 0.7% in December but were up 2.9% from last year. Core sales — which exclude autos, gasoline, building materials, and food services — decreased 1.9% from the prior month. Census Bureau Report

Business inventories increased 0.5% in November but were down 3.1% from November of last year. Manufacturers’ sales rose 0.7% but were down 1.3% compared to a year ago. Census Bureau Report

Industrial production increased 1.6% in December but is down 3.6% year-over-year. Capacity utilization rose 1.1 points to 74.5%. Fed Report

U.S. Economic Indicators

Initial jobless claims rose 181,000 to 965,000 last week. The four-week moving average increased 18,250 to 834,250. DOL Report

U.S. News

The Wall Street Journal reports that initial jobless claims reached their highest level in nearly five months last week, as the surge in COVID-19 cases triggered a wave of layoffs to begin the new year. Although initial claims tend to rise immediately after the holidays even in typical years, the magnitude of this year’s spike suggests that increasing COVID-19 cases and fresh business restrictions in some areas are exerting renewed pressure on the labor market. WSJ