{"id":2322999,"date":"2024-08-12T09:57:57","date_gmt":"2024-08-12T13:57:57","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/everyday-economics-will-retail-sales-housing-starts-alleviate-growth-concerns-washington-examiner\/"},"modified":"2024-08-12T10:04:36","modified_gmt":"2024-08-12T14:04:36","slug":"everyday-economics-will-retail-sales-housing-starts-alleviate-growth-concerns-washington-examiner","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/everyday-economics-will-retail-sales-housing-starts-alleviate-growth-concerns-washington-examiner\/","title":{"rendered":"Everyday Economics: Will retail sales, housing starts alleviate growth concerns? &#8211; Washington Examiner"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">26<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Feveryday-economics-will-retail-sales-housing-starts-alleviate-growth-concerns-washington-examiner%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2322999&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The article titled &#8220;Everyday \u2063Economics: Will\u2063 retail sales, housing starts\u2063 alleviate growth concerns?&#8221; discusses \u200brecent economic \u2063indicators in the U.S. that have caused both concern and optimism among investors. A higher-than-expected unemployment rate sparked panic, but data from the Institute for Supply\u2063 Management showed expansion in the services sector, and initial jobless claims decreased, helping the stock market recover\u2064 somewhat. The\u2063 upcoming retail sales data is seen as crucial to alleviating fears of a slowdown in consumer spending, which\u2063 could \u200dthreaten economic growth.<\/p>\n<p>Consumer spending has been a key driver of\u200b the economy,\u2064 with recent figures showing solid \u2064growth despite some moderation. Lower \u200dinflation has benefited \u2064household budgets, \u200dleading \u2062to \u200bincreased real wages and \u2063reduced delinquencies, all of which contribute to a more favorable consumer environment. The upcoming inflation reports \u2062from the Bureau of Labor Statistics will also \u2063be important, as they may influence decisions regarding potential\u200c Federal Reserve\u200c rate cuts in \u200bSeptember.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-header-search-button-mob dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-mobile-search-icon td-icon-search\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-drop-down-search\" aria-labelledby=\"td-header-search-button\">\n<div class=\"tdb-drop-down-search-inner\">\n<form method=\"get\" class=\"tdb-search-form\" action=\"https:\/\/www.washingtonexaminer.com\/\"><\/form>\n<div class=\"tdb-aj-search\"><\/div>\n<\/div>\n<\/div>\n<p><a href=\"http:\/\/www.washingtonexaminer.com\/#\" role=\"button\" aria-label=\"Search\" class=\"tdb-head-search-btn dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-search-icon td-icon-search\"><\/i><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<h1 class=\"tdb-title-text\">Everyday Economics: Will retail sales, housing starts alleviate growth concerns?<\/h1>\n<div><\/div>\n<div class=\"tdb-title-line\"><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div id=\"Brid_1727391\" class=\"tpd-featured-video bridtv\"><\/div>\n<p>(The Center Square) &ndash; A higher-than-expected increase in the unemployment rate caused significant panic last week. However, data from the Institute for Supply Management indicated that the services sector expanded in July, while the commerce department data showed initial jobless claims fell. The stock market made a modest recovery, partially erasing some of the week&rsquo;s losses, and Treasury yields rebounded slightly.<\/p>\n<p>While there are numerous indicators suggesting that recession fears may have been exaggerated, this week&rsquo;s retail sales data will be crucial in alleviating investors&rsquo; concerns that a slowdown in consumer spending could drag down economic growth.<\/p>\n<p>Private consumption has been the driving force behind the continued growth of the U.S. economy. Despite some easing in the second quarter, final sales to private domestic consumers grew by a solid 5.1%, down from an even stronger 5.6% in the first quarter. So far, lower inflation has provided a tailwind for household budgets. As inflation eased, real wages increased, delinquencies fell, and bank lending improved &ndash; resulting in more favorable conditions for consumers.<\/p>\n<p>The first of July&rsquo;s inflation reports, the Bureau of Labor Statistics&rsquo; Consumer Price Index (CPI) and Producer Price Index (PPI), will play a key role in guaranteeing a Federal Reserve rate cut in September. Consumer prices fell by 0.1% in June, bringing the annual increase in the CPI down to just 3%, with core CPI slightly higher at 3.3%.<\/p>\n<p><strong><a href=\"https:\/\/www.washingtonexaminer.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a><\/strong><\/p>\n<p>Fed expectations have already driven interest rates lower. Even before the early August growth scare, the benchmark 10-year Treasury yield had fallen from this year&rsquo;s 4.7% peak in May to below 4% at the end of July. However, a slowdown in the pace of disinflation, coupled with concerns about further weakening in the labor market, could trigger another stock market selloff.<\/p>\n<p>Lastly, the U.S. Census Bureau will release its estimates for housing starts in July. Historically, housing starts have been an excellent predictor of changes in economic activity and business cycles. Higher mortgage rates during this year&rsquo;s home shopping season caused home sales to dip and housing inventory to increase. As a result, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/homebuilder-confidence-falls-for-fourth-consecutive-month\/\" title=\"Homebuilder Confidence Falls for Fourth Consecutive Month\">builder confidence fell<\/a>, and many builders delayed starting new projects. In June, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/housing-starts-fall-to-lowest-level-since-2020-as-mortgage-rates-remain-high\/\" title=\"Housing starts hit record low since 2020 due to persistently high mortgage rates.\">housing starts hit<\/a> an eight-month low. This week&rsquo;s report is crucial: has the recent decline in mortgage rates supported a late-season increase in <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/national-association-of-realtors-economist-discusses-housing-crisis\/\" title=\"National Association Of Realtors Economist Discusses Housing Crisis\">home buying activity<\/a> that could get more builders back to work?<\/p>\n<p> <script data-cfasync=\"false\" src=\"http:\/\/www.washingtonexaminer.com\/cdn-cgi\/scripts\/5c5dd728\/cloudflare-static\/email-decode.min.js\"><\/script><script>!function(){var g=window;g.googletag=g.googletag||{},g.googletag.cmd=g.googletag.cmd||[],g.googletag.cmd.push(function(){g.googletag.pubads().setTargeting(\"has-featured-video\",\"true\")})}();<\/script><script>var _bp=_bp||[];_bp.push({\"div\":\"Brid_1727391\",\"obj\":{\"id\":\"27789\",\"width\":\"1280\",\"height\":\"720\",\"stickyDirection\":\"below\",\"video\":\"1727391\"}});<\/script><script defer src=\"https:\/\/services.brid.tv\/player\/build\/brid.min.js\"><\/script><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Everyday Economics: Can retail sales and housing starts ease growth worries? (The Center Square) \u2013 A surprising rise in the unemployment rate triggered considerable alarm last week. Nevertheless, data from the Institute for Supply Management revealed that the services sector grew in July, and initial jobless claims reported by the commerce department decreased. The stock market experienced a slight recovery, partially offsetting some of its losses from earlier in the week, while Treasury yields saw a minor rebound. Although there are several signs suggesting that fears of a recession may be overstated, this week&#8217;s retail sales figures will be critical in addressing investors&#8217; anxieties about a potential decline in consumer spending impacting economic growth. Private consumption has been pivotal to sustaining U.S. economic expansion. Despite some slowdown during the second quarter, final sales to private domestic consumers rose by a robust 5.1%, down from an even stronger 5.6% in Q1. So far, decreasing inflation has benefited household finances; as inflation subsided, real wages increased, delinquency rates dropped, and bank lending improved\u2014creating more favorable conditions for consumers. The first inflation reports for July\u2014the Bureau of Labor Statistics\u2019 Consumer Price Index (CPI) and Producer Price Index (PPI)\u2014will be significant for ensuring a Federal Reserve rate cut in September. Consumer prices fell by 0.1% in June, reducing the annual CPI increase to just 3%, with core CPI slightly higher at 3.3%. Expectations regarding Fed actions have already led to lower interest rates; prior to early August&#8217;s growth concerns, the benchmark 10-year Treasury yield had decreased from this year&#8217;s peak of 4.7% in May to below 4% at July&#8217;s end. However, if disinflation slows down further alongside worries about additional labor market weakening arise, it could lead to another selloff on Wall Street.<\/p>\n<p>Additionally, this week will see estimates released by the U.S Census Bureau regarding housing starts for July\u2014a historically reliable indicator of shifts in economic activity and business cycles. Rising mortgage rates during this year\u2019s home buying season resulted in reduced home sales and increased housing inventory; consequently builder confidence waned as many postponed new projects with June marking an eight-month low for housing starts.<\/p>\n<p>This week&#8217;s report is vital: will recent declines in mortgage rates stimulate an uptick in late-season home buying activity that could encourage builders back into action<\/p>\n","protected":false},"author":1,"featured_media":2323000,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/08\/grocery-aisle-shopping-shoplifting-1024x683.webp","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[36446,33476,37884,37883,32076],"class_list":["post-2322999","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner","tag-economic-growth","tag-everyday-economics","tag-housing-starts","tag-retail-sales","tag-washington-examiner"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/08\/grocery-aisle-shopping-shoplifting-1024x683.webp","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2322999","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2322999"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2322999\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2323000"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2322999"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2322999"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2322999"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}