I continue to be intrigued by the growing influence of vinyl records, a once dominant media that by the early 2000s was thought to be dead. Now, however, after 17 back-to-back years of ever-increasing sales growth (according to RIAA data), it is back. A global phenomenon, this week the U.K. government announced it would now include vinyl records in its official basket of goods used to track inflation.
Economic Trends
Declining Inflation Propels Consumer Sentiment Higher & Bodes Well for 2024 Economy
**STORY UPDATED 2/2/24**
NOTE: Scroll down for a brief update – The latest economic data showing lower inflation appears to be finally registering with consumers as the latest preliminary reading of the University of Michigan Index of Consumer Sentiment jumped more than a massive 13% in just one month. This took the index to its highest reading in two-and-a-half years (since July 2021).
See more on the U of M Index of Consumer Sentiment
[Read more…] about Declining Inflation Propels Consumer Sentiment Higher & Bodes Well for 2024 EconomyNovember Housing Starts Leap 15% as Lower Interest Rates Fuel Construction
The latest data on residential construction, a government reading known as housing starts, took a surprising jump in November according to the recently released information from the U.S. Census Bureau and the U.S. Department of Housing and Urban Development. Housing starts jumped an impressive 14.8% in November as compared to the revised October reading – a huge statistical leap.
See more on the jump in November housing starts
[Read more…] about November Housing Starts Leap 15% as Lower Interest Rates Fuel ConstructionOctober Housing Starts Show a Surprise Upturn in Construction; But Builder Confidence Declines
Is this the beginning of a new trend? After a notable jump in September, which some suggested may have been a bit of a fluke, residential construction – known as housing starts – actually surprised some industry analysts by jumping again in October. And while the amount of increase was more modest, that there was another month of increase may indicate the beginning of a new trend. Yet other data calls into question just where residential construction is heading. Read on to see that data…
See more on housing starts in October & declining homebuilder confidence
[Read more…] about October Housing Starts Show a Surprise Upturn in Construction; But Builder Confidence DeclinesAfter Sliding in August, Residential Construction Recovers with Housing Starts Up in September
In new data released Wednesday by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development, residential construction – otherwise known as housing starts – returned to growth again, after registering a concerning double-digit decline in August. However, most analysts believe housing will continue to be challenged by a combination of high prices and high interest rates combining to make housing unaffordable for most buyers.
See more on the latest residential construction or housing starts numbers
[Read more…] about After Sliding in August, Residential Construction Recovers with Housing Starts Up in SeptemberAugust Housing Starts Hit Lowest Level in Three Years
Homebuilder Sentiment Drops for First Time in Seven Months
Yet another sign of the struggling housing industry as climbing mortgage rates and historically high home prices combine to drop new residential construction – known as housing starts – to their lowest level in three years. Both single-family housing starts and overall housing starts, which includes multi-family dwellings, saw significant declines in August.
See the latest data on August housing starts
[Read more…] about August Housing Starts Hit Lowest Level in Three YearsAs Inflation Slides, Consumer Confidence Soars
A key metric of the U.S. economy is consumer confidence – a reading of how confident consumers feel about the economy, both currently and in the near future. A confident consumer helps stimulate the economy by freely spending their money, as compared to an unconfident or insecure consumer who will instead pull back on spending to hold on to their money. Now, three major surveys that offer key readings on consumer sentiment in July show big gains in confidence – a bullish sign for the economy.
See more on how consumer confidence is soaring
[Read more…] about As Inflation Slides, Consumer Confidence SoarsInflation Drops Big in June; But Don’t Pop the Champagne Cork Just Yet
Chalk this up to good economic news! Yesterday, the latest Consumer Price Index (CPI) reading for the year through June shows that inflation continues to moderate, coming in at a reading of just 3% growth. That is well off the reading of 4% through May and much better than economists had anticipated.
But it is not yet time to open the champagne just yet, as we are likely to have another interest rate increase from the Federal Reserve Board (the Fed) later this month, and perhaps yet another one before the end of 2023 as they try to manhandle inflation down to their 2% target rate.
See more on the direction of inflation
[Read more…] about Inflation Drops Big in June; But Don’t Pop the Champagne Cork Just YetMay Inflation Rate Raises Hope for ‘Soft Landing’; Fed Keeps Current Interest Rate
On the face of it, the inflation numbers for May seemed quite positive and an apparent validation of the Federal Reserve Board’s efforts to glide the economy into a “soft landing.” But the overall number, a 4% increase in the broader-based Consumer Price Index turned out to be a bit of an illusion, causing the Fed to leave interest rates at the current level, but forecast two more interest rate increases in 2023.
See more on inflation concerns
[Read more…] about May Inflation Rate Raises Hope for ‘Soft Landing’; Fed Keeps Current Interest RateConsumer Confidence in March Turns Up ‘Slightly’; Spending Plans Revealed
In the latest data on consumer confidence, The Conference Board reports a positive, if only “slightly” so (their words), uptick in consumer confidence readings in March as compared to the sentiment in February. The organization’s Consumer Confidence Index (CCI), a widely followed read on how consumers are feeling about both existing and upcoming business conditions, is an important indicator of potential economic activity.