According to the Consumer Price Index, inflation reaccelerated in January as the monthly increase was 0.3%, following a 0.2% increase in December. Headline inflation declined to 3.1% from 3.4% in December.  Retail sales declined in January as weather disrupted sales…

New-vehicle prices fell in January with weaker retail demand. Incentives relative to price reached the highest level since July 2021. Discounting relative to the manufacturer’s suggested retail price (MSRP) has decreased slightly to nearly half of what it was in…

Job growth in January reaccelerated and was much stronger than expected, plus prior months were revised up. The three-month average for job creation increased to the highest level in nine months, casting doubt on the thesis that job growth is…

As expected, the Fed left interest rates and overall monetary policy unchanged yesterday. We have now had four straight meetings with no change in rate policy. The biggest changes from the Fed are in the language that describes their bias,…

The economic data released last week affirmed a strong ending to 2023. Real GDP growth was 3.3% for the fourth quarter, which represented a slowing from the third quarter but was still very strong. All components of GDP were positive…

Retail sales grew more than expected in December, posting their strongest performance since January 2023. New construction trends were mixed in December, but the underlying trend suggests stability in aggregate with more strength in single-family homes. Existing home sales declined…

Used-vehicle prices declined again in December while used-vehicle retail sales improved. Lower prices create demand for affordability-challenged consumers. Inflation, according to the Consumer Price Index, reaccelerated modestly in December. Headline inflation increased to 3.4% from 3.1% in November.  Consumer credit…