U.S. Economic News
August 17, 2020
U.S. Economic Indicators
The Empire State Manufacturing Survey indicates that business activity edged slightly higher in August, as the headline index fell 13.5 points to 3.7. The new orders index fell 15.6 points to -1.7, the shipments index fell 11.8 points to 6.7, and the index for the number of employees rose 2.0 points to 2.4. NY Fed Report
The NAHB Housing Market Index rose 6 points to 78 in August – its highest reading in the 35-year history of the series. NAHB reports that low interest rates and a shift to the suburbs is sustaining demand for single-family homes, but they caution that increasing lumber prices could slow the momentum. NAHB Report
U.S. News
The New York Times reports that cities across the country could face a reduction in services as the coronavirus pandemic takes its toll on budgets, particularly in cities that rely heavily on tourism, sales tax, and state aid to keep their operations running. These budget shortfalls have the potential to widen disparities between cities, as was the case with the Great Recession, unless Congress and the White House can reach an agreement on a relief package that includes aid to state and local governments. NYT