Economy in Brief: 2020

• Budget gap totals $3.132 trillion. • The deficit accounted for roughly 16% of GDP, the most since 1945. • Receipts declined while outlays surged. The U.S. Treasury Department reported that the budget deficit increased to $3.132 [...]

• Business inventory accumulation accelerates. • Sales growth eases. • Inventory-to-sales ratio falls further to six-year low. Total business inventories rose 0.3% (-5.5% y/y) during August following an unrevised 0.1% uptick in July. [...]

September marks the first year-on-year gains in car registrations for 2020. Registrations are now up by 2.9% over September of one-year ago. Sales also show growth surging strongly over six months and over three months, but the pace [...]

• Consumer spending improves broadly. Consumer spending was notably firm last month, rising for the fifth consecutive month, despite limited store openings due to COVID-19. Total retail sales, including food service & drinking [...]

• Industrial production declined 0.6% in September after four months of gains; production 7.1% from February. • Manufacturing decreased 0.3%; 6.4% below February level. • Motor vehicle output down for second consecutive month. [...]

Japan's service sector index (tertiary sector from METI) is the most recent reading on Japan's economy. That index rose to 95.1 in August from 94.3 in July. However, it has a 3.1 percentile standing based on its y/y growth rate and [...]

• Headline index rose to highest level since February. • Component strength was broad-based. • Expectations continued to strengthen. The Federal Reserve Bank of Philadelphia reported that its General Factory Sector Business Conditions [...]

• Oil prices backpedal. • Export price gains remain firm. Import prices increased 0.3% (-1.1% y/y) during September after rising 1.0% in August, revised from 0.9%. The increase matched expectations in the Action Economics Forecast [...]