A new report by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development notes that residential housing construction starts (housing starts) has taken a pretty severe downturn in May with overall starts sliding fully -14.4%. This is yet another indicator of the slowing growth in the housing market, as rising mortgage rates, overall inflation, and high housing prices begin to cool the once red-hot housing market.
Economic Trends
Economic Anxiety Builds with Unexpected Jump in Inflation in May; Stocks Turn Bearish
>Consumer Sentiment Hits Record Low in June
Things are changing in the economy faster now, causing a dramatic uptick in economic anxiety. The fuse was lit last Friday when the latest government data showed that inflation increased to 8.6% in May compared to last year. The reading on inflation had been widely expected by most economists to drop a point or two from the 8.3% rate of inflation reported in April. The news sent Wall Street into a tailspin as traders interpreted the increase in inflation as a heightened risk of recession.
See more on changing economic trends, like inflation
[Read more…] about Economic Anxiety Builds with Unexpected Jump in Inflation in May; Stocks Turn BearishMortgage Demand Drops to Its Lowest Level in 22-Years
Almost weekly now, we are regularly seeing new data showing the dramatic slowdown of the housing market. A case in point is the latest data from the Mortgage Bankers Association which tracks the weekly demand for mortgages for both home purchases and for refinancing. The Association reported that its index hit its lowest level in demand for mortgages in 22-years.
See more on the slide in mortgage demand
[Read more…] about Mortgage Demand Drops to Its Lowest Level in 22-YearsSales of Newly Constructed Homes Collapse in April; Odds of Recession Tick Higher
Sales of newly constructed homes virtually collapsed in April in a double-digit decline that surprised economists and added to the growing evidence that the housing market is entering a downturn. This downturn in housing adds to growing concerns of a recession, as it comes on the heels of the tech industry decline, and new retailer warnings of slackening demand and supply chain driven cost increases.
See the surprising numbers out of the housing market today
[Read more…] about Sales of Newly Constructed Homes Collapse in April; Odds of Recession Tick HigherApril Housing Starts Decline Again; Builder Sentiment in Steep Slide in May
In yet another sign of a slowing economy, April residential housing construction starts declined for the second straight month in a row. At the same time, the Housing Market Index, a key gauge of homebuilder confidence, collapsed in May.
See what’s going on in with housing starts & builders
[Read more…] about April Housing Starts Decline Again; Builder Sentiment in Steep Slide in MayMore Data Emerges That Points to a Slowing Economy
I’ve put together a compendium of data that emerged this week that continues to point to the reality of a slowing economy. The picture gets clearer as more economic measures, including non-traditional measures like the Fluffy Puppy Indicator and home foreclosures reinforce the thinking of economists that more drastic action by the Fed to get inflation under control may lead us into the “R” word…recession.
See my compendium of some new, and some non-traditional data on the economy
[Read more…] about More Data Emerges That Points to a Slowing EconomyWhat’s Delaying New Chip Fabs to Reinforce the Supply Chain? Yep…The Supply Chain
Ever since supply chain shortages hit many industries, particularly in relation to the availability of integrated circuits or chips, there has been a massive scramble to increase capacity and to build new chip fabricating facilities (fabs) or factories. There has been a series of announcements from huge companies like Intel, Taiwan Semiconductor Manufacturing Co. (TSMC), Samsung, and others launching massive multi-billion projects to add more chip production facilities.
There’s just one problem…the equipment they need to build these facilities are themselves delayed.
See more on the supply chain shortages delaying new factories to help the supply chain
[Read more…] about What’s Delaying New Chip Fabs to Reinforce the Supply Chain? Yep…The Supply ChainServe a Luxury Customer? Beware! An Alarming Red Flag Has Just Emerged
A new analysis that correlates consumer confidence by income level has produced a shocking red flag for any business that offers goods and services to the luxury customer – as do many custom integrators. Fire up your sensors and watch closely to see if clients in your market are subject to this alarming trend.
See more on a shift in the attitude of the luxury customer
[Read more…] about Serve a Luxury Customer? Beware! An Alarming Red Flag Has Just EmergedConsumer Sentiment Nears 11-Year Low; Near-Term Inflation the Bogeyman
For three straight months now, consumer sentiment has declined as the world faces war in Europe, soaring global gas prices, price inflation on a wide range of consumer goods, and lingering supply chain issues. As measured by the widely followed University of Michigan Index of Consumer Sentiment released earlier this month, the index is nearing its lowest level in 11-years.
See more on the souring consumer sentiment and what it means
[Read more…] about Consumer Sentiment Nears 11-Year Low; Near-Term Inflation the BogeymanSputtering Supply Chain Takes Another Hit as China Forces Factories to Close
Here we go again! Yet another major blow has been dealt to the supply chain, this time from another round of COVID-19 hitting China, forcing lockdowns in many critical areas of the country – including Shenzhen. You may or may not know that much of the electronics goods manufactured in China come out of the Shenzhen region – so we all have a direct connection to the impact of this development. Add to this, new reports of container costs rising again and transportation disruptions from the Russian invasion of Ukraine. What’s next?