Economy in Brief

The Federal Reserve left the target for the Fed funds rate in a range of 0.00% to 0.25% at today's meeting of the FOMC. The Fed indicated that it will maintain this target range until the economy "is on track to achieve its maximum [...]

Trade flows are still depressed compared to what they previously were doing. Year-over-year exports and imports are contracting at about a 10% or so pace while previous to the recession export and import growth rates had been in a [...]

• Housing market activity continues to strengthen. • Improvement remains broad-based regionally. • Number of prospective buyers reaches new record. The Composite Housing Market Index from the National Association of Home Builders- [...]

• Business inventories edged up 0.1% in July after six consecutive monthly declines. • Sales jump 3.2%, but still 1.9% below January peak. • Inventory-to-Sales ratio falls to six-year low. Total business inventories ticked up 0.1% in [...]

• Growth in consumer spending was below expectations last month. • Slower growth was widespread. The consumer pulled back on visits to retail outlets last month, despite limited openings of some stores after shutdowns due to COVID-19. [...]

• Applications for both purchase and refinancings declined. • Mortgage rates edged down to record lows. The Mortgage Bankers Association Mortgage Loan Applications Index decreased 2.5% w/w (+33.0% y/y) in the week ended September 11, [...]

Meanwhile, back on earth, conditions remain weak and mixed ZEW expectations rose in September in five of the six countries surveyed; the United Kingdom was the exception. Current conditions improved everywhere up and down the line but [...]

• Manufacturing output remains strong. • High Tech and nondurable goods sectors are notably firm. • Capacity usage is unconstrained. Industrial production increased 0.4% (-7.7% y/y) during August following a 3.5% jump in July, revised [...]