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Sales of new single-family houses in December 2024 were at a seasonally adjusted annual rate of 698,000. This is 3.6 percent (+/- 19.7%)* above the revised November 2024 estimate of 674,000. ![]()
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December 2024: +3.6* % Change![]()
November 2024 (r): +9.6* % Change
Momentum is growing among the president’s advisers to place tariffs on Mexico and Canada as soon as Saturday, bucking conventional wisdom that Trump would back off the threatened levies as he has in the past in exchange for concessions. buff.ly/4h7JLwn
China’s economic activity unexpectedly faltered, breaking the momentum of a recovery sparked by stimulus measures and underlining the need for Beijing to do more to prevent another slowdown. buff.ly/4hx7m9y
Economists surveyed by Bloomberg project the government’s initial estimate of fourth quarter gross domestic product — the sum of goods and services produced — to show an annualized 2.7% increase. That would follow back-to-back quarters of about 3% growth.
This is an interesting way to forecast consumer demand. We are skeptical with current conditions but the process is good: Inventory levels suggest demand will not be a concern in early 2025. buff.ly/4auPnhH
The S&P 500 advanced 1.7% last week, pushing the index to its first record high for the year. The Dow Jones Industrial Average and the NASDAQ also posted big gains, 2.2% and 1.7% respectively. ![]()
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The MBA Mortgage Application Index was mostly unchanged last week (+0.1%) after soaring 33.3% the week before, indicating that after a year of suppressed home sales, the housing market may be rebounding as consumers adjust to higher housing prices. ![]()
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Existing home sales increased 2.2% in December to a seasonally adjusted annual rate of 4.24 million in December, higher than expected. The housing market in 2024 was poor, with existing home sales falling to the lowest level in 30 years; however, December’s sales may indicate that consumers are recovering from high home prices. ![]()
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Initial claims increased slightly this week to 223,000, but have remained low overall since the high levels over the summer. Continuing claims, however, have maintained high levels, indicating difficulty for job seekers to gain employment after being laid off. ![]()
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The University of Michigan Index of Consumer Sentiment was released for December, showing that consumer confidence is lower than expected, at 71.1, rather than the expected level of 73.0. Consumer confidence was tested in 2024 with inflation staying above the target rate and initial claims being elevated throughout most of the year. ![]()
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The Leading Indicators Index decreased by 0.1% this week, possibly due to lower-than-expected consumer confidence due to concerns with economic growth, inflation, and unemployment. ![]()
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Both the supply of oil and natural gas contracted, with natural gas falling 223 billion cubic feet, and oil falling 1.02 million barrels. @Chmura Economics & Analytics
Thoughts on the Latest Economic News