U.S. Economic News
December 19, 2019
U.S. Economic Indicators
Existing home sales fell 1.7% to a seasonally adjusted annual rate of 5.35 million in November but are up 2.7% compared to a year ago. Sales grew in the Northeast and Midwest regions while declining in the South and West. NAR Report
The Conference Board’s Leading Economic Index (“LEI”) was unchanged in November following a 0.2 point decline in October. Strength in residential construction, financial markets, and consumers’ outlook was offset by weakness in manufacturing and labor markets. Conference Board Report
Initial jobless claims fell 18,000 to 234,000 last week. The four-week moving average rose 1,500 to 225,500. DOL Report
U.S. News
The Wall Street Journal reports that the Trump administration is considering policy proposals to reduce the burden of Americans’ student loan debt, the second-highest form of consumer debt after mortgages. Plans under consideration include refinancing student loans at lower rates, eliminating student debt in bankruptcy, and changing rules for income-based repayment plans. WSJ
The Financial Times reports that the trend of offshoring jobs from high- to low-wage countries is stalling or even reversing as rising labor costs in emerging economies reduce the benefits of shifting operations overseas. Other factors are also pushing many companies towards “reshoring” jobs back to their home countries, including rising shipping costs, a desire to be closer to customers, and concern about brand image. FT