The major story in these places is very rapid population growth, with retirees, seasonal residents and tourists coming in, |
The Miami economy is the strongest it has been in my memory as a professional economist, which goes back 22 years. International trade is booming. Population growth is strong. And all that growth is creating tremendous demand for services. |
The more important figure (than confidence) for the economy is what consumers actually do. Consumers are not sitting on their wallets just yet. But that is about the only bright spot in this morning's report. With consumers concerned about both their stock portfolios and employment prospects, spending will likely rise a little less rapidly this fall. |
The most recent acceleration in productivity growth looks like it was cyclically driven, ... Even with output soaring, many businesses were reluctant to boost hiring because the Fed was hiking interest rates and energy costs were surging. Even if businesses wanted to hire more workers, many could not because the labor markets were so tight. |
The most recent acceleration in productivity growth looks like it was cyclically driven. Even with output soaring, many businesses were reluctant to boost hiring because the Fed was hiking interest rates and energy costs were surging. Even if businesses wanted to hire more workers, many could not because the labor markets were so tight. |
The mystery is why this prolonged profit slump has not led to a larger cutback in consumer spending, ... The longer the profit drought persists the greater the risk is that this recession will broaden and deepen. |
The mystery is why this prolonged profit slump has not led to a larger cutback in consumer spending. The longer the profit drought persists the greater the risk is that this recession will broaden and deepen. |
The No. 1 reason new orders and production are falling is that inventories have risen in recent months as consumer spending has slowed, ... Such a buildup was acceptable when economic growth was accelerating. Now that growth is cooling off, businesses will need to curb stockpiles. |
The No. 1 reason new orders and production are falling is that inventories have risen in recent months as consumer spending has slowed. Such a buildup was acceptable when economic growth was accelerating. Now that growth is cooling off, businesses will need to curb stockpiles. |
The number one problem continues to be a lack of job and income growth. |
The populations in Louisiana and Mississippi are incredibly poor. Most of the damage was from flooding, which doesn't tend to be covered by insurance. That combination adds up to an incredibly long and painful rebuilding process_ I think five to 10 years. |
The prices paid is still way up there, inflation is still running a little hot, enough that the Fed will continue to raise interest rates. |
The problem with the November employment numbers is hiring for the holiday season. It's hard to get a gauge of what it's going to be. They do a seasonal adjustment to the number to account for that, but the seasonal adjustment causes wider swings. And this year Thanksgiving came later in the month, so hiring might have started after the November data was collected. |
The recent weakness in wage and salary growth is bad news for retailers, since wages and salaries, which account for more than 56 percent of personal income, tend to influence spending decisions far more than other income sources. |
The relief money is coming in much faster than it has for any other natural disaster that I can remember. That should help minimize some of the hit on consumer spending, |