U.S. Economic News

June 26, 2017

U.S. Economic Indicators

New orders of manufactured durable goods fell 1.1% in May after decreasing 0.9% in April (revised), but are up 2.8% year-over-year.  Excluding transportation, new orders rose 0.1% (up 4.6% Y/Y).  Census Bureau Report

The Chicago Fed National Activity Index fell from 0.57 in April to -0.26 in May, indicating below average economic growth for the month. The employment, production, and personal consumption and housing components made negative contributions, while the sales component made the only positive contribution. Chicago Fed Report

U.S. News

The Wall Street Journal reports that President Trump’s proposed tariffs on steel imports have received opposition from senior leaders on both sides of the aisle.  Opponents say that the tariffs could raise the costs of inputs for U.S. consumers of steel and could also cause retaliatory policies by U.S. trade partners. WSJ
Richard Rubin of the Wall Street Journal writes that congressional Republicans have proposed eliminating the tax deduction for interest paid on debt. Rubin argues that the elimination of this deduction could have an outsized effect on the U.S. finance and agriculture industries, as both firms and individuals would struggle to raise and service debt cheaply. WSJ
The Bank for International Settlements (“BIS”) on Sunday warned that escalating worldwide protectionist sentiment could threaten the global economy.
In its annual report, the organization claims that rolling back globalization could be just as damaging to robust economic growth as reversing critical technological advancements. WSJ