Strata-gee.com

Strategy in TECH...

You are here: Home / Archives for Economic Trends

Economic Trends

Supply Chain Nightmares Return; Union Strikes at 36 Eastern & Gulf Ports

by 2 Comments

The supply chain stressed by port strikes
Cargo ship loaded in New York container terminal at night viewed from Elizabeth NJ

On Tuesday this week, at precisely 12:01 a.m., 45,000 dockworkers in 36 ports up and down the East Coast and throughout the Gulf of Mexico went on strike. That sentence should send a shiver down your spine because, yes folks, a new supply chain nightmare has begun. This possibility has been on my radar screen for a couple of weeks, but I hesitated to write about it because I was hopeful that negotiations would yield a resolution that would prevent this nightmare from happening…and then I would have been accused of fear mongering.

But negotiations did not yield a solution…so here we are!

See more on a new supply chain nightmare

[Read more…] about Supply Chain Nightmares Return; Union Strikes at 36 Eastern & Gulf Ports

Residential Construction Jumps in August as Mortgage Rate Drops Promise a Lift in Sales

by Leave a Comment

A prime example of residential construction - a home being built

The latest data from the U.S. Census Bureau and the U.S. Department of Housing and Urban Development showed that residential construction (housing starts) took off in August with high single-digit overall and even double-digit upside gains in the single-family construction segment. Many industry observers attributed the upturn to now more optimistic builders looking to take advantage of improving housing affordability with mortgage rates declining. Many builders believe this will stimulate a big upturn in sales.

See all the latest residential construction data

[Read more…] about Residential Construction Jumps in August as Mortgage Rate Drops Promise a Lift in Sales

Scan Your Radar Closely: Consumer Finances are Getting Stressed

by Leave a Comment

Photo of a consumer shopping center

When most of us think about the Fed (the Federal Reserve Board), we think about Chairman Jerome Powell setting bank rates that can have a major impact on the U.S. economy. But what you may not know is that the Fed is a prodigious monitor and relayer of economic data. New data points have come to my attention that show increasing pressure as consumer debt levels and delinquency rates continue to rise – a condition impacting the everyday average American consumer. I felt compelled to share this data with you so you can begin tracking it on your radar screens as well.

See the new data on the consumer market I find troubling

[Read more…] about Scan Your Radar Closely: Consumer Finances are Getting Stressed

After a Hopeful February, March Housing Starts Drop Double-Digit Percentage

by Leave a Comment

This is a new home; housing starts declined in March

Residential construction, known as housing starts, dropped in March by a surprising double-digit percentage. Most industry analysts believe that the slowdown is due to stubborn inflation readings motivating the Fed to keep interest rates high which is affecting mortgage rates and home affordability.

After solid gains in February raised hopes in the segment, the March numbers were a chilling splash of reality as home inventory is low and mortgage rates are high.

See more on housing starts in March

[Read more…] about After a Hopeful February, March Housing Starts Drop Double-Digit Percentage

Home Construction Looks to Rebound in 2024; Housing Starts & Builder Sentiment Up

by 1 Comment

home construction looks to be picking up steam in 2024

The overall housing market has been an economic laggard as the country has seen its economy rebound in the post-pandemic era. The reason for this is primarily due to an unusual combination of high interest rates AND high home prices AND limited available inventory of homes for sale. It is a triple witching that has bedeviled the housing industry in the post-pandemic era.

But is housing about to turn up?

See how the latest housing starts data is a positive sign for home construction

[Read more…] about Home Construction Looks to Rebound in 2024; Housing Starts & Builder Sentiment Up

U.K. Gov’t Will Use Vinyl Records as Part of Its Official Tracking of Inflation

by Leave a Comment

Onkyo turntable with vinyl record

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.

See more on the growing influence of vinyl albums

[Read more…] about U.K. Gov’t Will Use Vinyl Records as Part of Its Official Tracking of Inflation

Declining Inflation Propels Consumer Sentiment Higher & Bodes Well for 2024 Economy

by Leave a Comment

Photo of shoppers

**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 Economy

November Housing Starts Leap 15% as Lower Interest Rates Fuel Construction

by Leave a Comment

photo of a home being constructed

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 Construction

October Housing Starts Show a Surprise Upturn in Construction; But Builder Confidence Declines

by 1 Comment

This completed home was once a housing start

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 Declines

After Sliding in August, Residential Construction Recovers with Housing Starts Up in September

by Leave a Comment

Photo of residential construction shows housing starts in a neighborhood being built
[Photo: Reuters]

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 September