U.S. Economic News

U.S. Economic News

October 22, 2020

U.S. Economic Indicators

Initial jobless claims fell 55,000 to 787,000 last week. The four-week moving average decreased 21,500 to 811,250. DOL Report

Existing home sales rose 9.4% to a seasonally adjusted annual rate of 6.5 million in September and were up 20.9% compared to a year ago. Home sales increased in all four major regions on both a month-on-month and year-on-year basis. NAR Report

The Conference Board’s Leading Economic Index (“LEI”) rose 0.7% in September following a 1.4% increase in August. The improvement in the LEI was driven by declining unemployment claims and rising housing permits, though the decelerating pace of improvement implies the economy could be losing momentum heading into Q4. Conference Board Report

U.S. Economic News

U.S. Economic News

October 21, 2020

U.S. News

The New York Times reports that while the CARES Act allocated $454 billion to back up to $4 trillion in Fed loan programs, those programs have made just $20 billion in loans so far. The failure of the massive Fed lifeline to fully materialize was largely the result of calmer markets after the loan programs were introduced; however, the programs’ effectiveness was also constrained by risk aversion at the Treasury and hesitance by Fed officials to drastically expand the central bank’s role beyond that of a lender of last resort. NYT

According to the Financial Times, shipping costs from Asia to the U.S. have soared over the past month as American companies push to restock depleted inventories ahead of the holiday season and potential winter surge of COVID-19. The recovery in demand for transpacific goods has outpaced the pickup in supply, contributing to ongoing volatility and imbalances in the shipping market. FT

Keybridge Releases Interactive Progress Report on the McDonald’s Global Happy Meal Goals

Keybridge Releases Interactive Progress Report on the McDonald’s Global Happy Meal Goals

In 2018, McDonald’s announced five ambitious Global Happy Meal Goals to be achieved in all markets globally by the end of 2022, with independent measurement and reporting of progress among 20 major markets representing nearly 85% of Happy Meal sales. This process includes the collection of data reported directly by the 20 major McDonald’s market teams as well as independent data collection. This interim public report details the progress that the 20 major markets have made through early 2020.
U.S. Economic News

U.S. Economic News

October 20, 2020

U.S. Economic Indicators

Privately-owned housing starts rose 1.9% in September to a seasonally adjusted annual rate of 1.42 million (up 11.1% year-over-year). Housing permits rose 5.2% to a 1.55 million annual pace (up 8.1% from last year). Census Bureau Report

U.S. News

The Wall Street Journal reports that the share of U.S. households without a bank account declined to 5.4% in 2019 according to a recent FDIC report on access to financial services. Officials warn, however, that the share of unbanked households may rise due to the pandemic as access to banking services is strongly correlated with employment. WSJ

U.S. Economic News

U.S. Economic News

October 19, 2020

U.S. Economic Indicators

The NAHB Housing Market Index increased two points to 85 in October. NAHB reports that the housing market continues to be a bright spot for the economy as record-low interest rates and the reconceptualization of ‘home’ in the COVID era keep demand strong. NAHB Report

U.S. News

The Financial Times reports that Congressional Democrats have set a two-day deadline on stimulus negotiations if a new package is to be passed before the election. While the White House has maintained support for a larger stimulus package, it remains unclear whether the House and Senate can overcome disagreement on the size and scope of the bill. FT

According to the Wall Street Journal, economists warn that China’s rapid recovery is unlikely to provide as strong of a boost to the rest of the global economy as it did in the wake of the 2008 financial crisis. China’s economic stimulus measures in response to the pandemic have been constrained by rising debt levels, and the recent acceleration of economic activity may wane as pent-up demand fades. WSJ