Economy in Brief: 2020

• Factory activity weakens as coronavirus surges. • New orders, production and employment series ease. • Price index remains strong. The Institute for Supply Management (ISM) reported that its Composite Index of Manufacturing Sector [...]

• Construction spending increased 1.3% in October with net upward revisions to previous two months. • Residential jumps 2.9%; continued weakness in nonresidential. • Public increases for first time since May. • Total spending now just [...]

• Gasoline prices improve. • Crude oil costs continue to rise. • Natural gas prices move lower. The price of regular gasoline improved last week, rising to $2.12 per gallon (-17.7% y/y) and reversing the prior week's decline to $2.10. [...]

• General business index slipped. • Production cratered but employment improved. • Expectations index eased. The Federal Reserve Bank of Dallas reported that its Texas Manufacturing Outlook Survey General Business Activity Index fell [...]

• Business activity index falls to three-month low. • Production, orders and inventories decline. • Pricing power strengthens. The Chicago Purchasing Managers Business Barometer eased to 58.2 during November from October's 61.1. It [...]

China's manufacturing PMI moved up to a reading of 52.1 in November from 51.4 in October after posing readings in the 51 area for four months in a row. The break-out gain is the highest reading since September 2017. The index has not [...]

• Second monthly decline in pending home sales after four consecutive monthly increases. • Sales drop concentrated in Northeast. Pending home sales fell 1.1% m/m (+20.2% y/y) in October, their second consecutive monthly decline [...]

The Italian business and consumer confidence readings are excellent examples of what much of Europe is going through right now. Italian confidence was hard-hit on the encroaching virus early in the year. It then snapped back sharply [...]