Publications

U.S. News

Bloomberg reports that top Biden administration officials will hear today from more than a dozen CEOs of companies grappling with the sharply constrained global supply of semiconductors. While the White House has previously communicated that there is no short-term fix for the shortage, the meeting today signals that the administration is serious about confronting supply chain issues and improving supply chain resilience. Bloomberg

Bloomberg highlights that the Labor Department’s most recent report on producer prices includes a “below-the-radar” data point – the sharpest monthly spike since 1974 in processed goods for intermediate demand. Costs for these inputs – which include materials like steel and plastics – were 12.5% higher in March than year-ago levels and partly reflect a strengthening of demand as the economy revives. Bloomberg

U.S. Economic Indicators

The headline Producer Price Index (“PPI”) for final demand rose 1.0% in March and is up 4.2% year-over-year, the largest yearly increase since September 2011. The core – which removes the volatile prices of food, energy, and trade services – rose 0.6% in March and is up 3.1% year-over-year. BLS Report

U.S. News

The New York Times reports that Federal Reserve chair Jerome Powell emphasized that controlling the coronavirus pandemic in all nations, not just advanced economies, will be key to overall recovery and the global economic outlook. At an International Monetary Fund panel yesterday, Powell also highlighted the importance of investing in projects that will improve the inclusiveness and long-term potential of the U.S. economy. NYT

U.S. Economic Indicators

Initial jobless claims increased 16,000 to 744,000 last week. The four-week moving average increased 2,500 to 723,750. DOL Report

U.S. News

The New York Times reports that office vacancies across the country have climbed to their highest levels in decades as more businesses embrace remote work and rent less space. In city centers, the vacancy rate for office buildings climbed to 16.4 percent over the past year, but that could change in the long-term depending on whether companies shift to more permanent remote or hybrid work or back to more traditional in-person work. NYT

U.S. Economic Indicators

The U.S. trade deficit widened from $67.8 billion (revised) in January to $71.1 billion in February. The goods deficit increased by $2.8 billion, while the services surplus decreased by $0.5 billion. Census Bureau Report

U.S. News

Bloomberg reports that a recent poll from the New York Fed found that consumers are expected to spend less than 25% of their latest stimulus checks, instead using the majority of funds to pay down debt and add to savings. In comparison, consumers spent 29% and 26% of their first and second stimulus checks, respectively, highlighting the divergent needs of households over the course of the pandemic. Bloomberg

U.S. Economic Indicators

The Job Openings and Labor Turnover Survey (“JOLTS”) indicated that the number of job openings edged up to 7.4 million in February. The number of hires ticked up to 5.7 million, while the layoffs and discharges rate was little changed at 1.2%. BLS Report

U.S. News

The Wall Street Journal reports that the International Monetary Fund now expects the world economy to grow 6% in 2021. The upward revision from its January forecast of 5.5% is largely due to aggressive stimulus spending and accelerated vaccine rollout in the U.S. and other advanced economies. WSJ