U.S. Economic News
January 29, 2020
U.S. Economic Indicators
The U.S. Census Bureau Advance Economic Indicators Report shows that the goods deficit widened to $68.3 billion in December from $63.0 billion in November. Meanwhile, wholesale inventories edged down 0.1% and retail inventories were unchanged. Census Bureau Report
The National Association of Realtors pending home sales index fell 4.9% in December (up 4.6% Y/Y). NAR reports that the ongoing shortage of affordable housing options remains a long-term concern. NAR Report
U.S. News
According to the Wall Street Journal, the latest projections by the Congressional Budget Office show that the national debt and federal budget deficits are on track to reach their highest levels since World War II over the next decade. Debt held by the public is projected to reach 98% of GDP by 2030, resulting from the combination of tax cuts and increased spending on social safety net programs. WSJ
The New York Times reports that the Wuhan coronavirus outbreak is testing the global economy’s dependence on China, as industries ranging from manufacturing to tourism brace for hits to first-quarter production and profits. Some foreign-owned companies are already making plans to temporarily change supply chains until the crisis abates, but uncertainty surrounding the ultimate extent of the virus has left others paralyzed as they wait for more information. NYT