Economy in Brief: 2020

• Home building still held back by coronavirus shutdowns last month. • Building permit increase suggests improvement is coming. New residential housing starts increased 4.3% during May (-23.2% y/y) to 974,000 (SAAR) from 934,000 in [...]

• Industrial production rose 1.4% in May after a downwardly-revised record 12.5% drop in April. • Manufacturing increased 3.8%; still at 1997 levels. • Motor vehicle output more than doubles but at just 36.4% of February level. [...]

The ZEW macroeconomic index 'improved' slightly in the EMU, rising to -89.6 in June from -95.0 in May. The gain on the month is small and the reading itself is still at an exceptionally weak mark. Germany improved to an -83.1 reading; [...]

• Housing market continues to recover. • Rebound leaves activity below December's peak. The Composite Housing Market Index from the National Association of Home Builders-Wells Fargo moved up to 58 during June and added to its May rise [...]

• Industrial production rose 1.4% in May after a downwardly-revised record 12.5% drop in April. • Manufacturing increased 3.8%; still at 1997 levels. • Motor vehicle output more than doubles but at just 36.4% of February level. [...]

• Consumer spending posts surprising, record increase. • Discretionary spending rebounds sharply, reflecting pent-up demand. Total retail sales, including food service establishments, increased a record 17.7% (-6.1% y/y) during May [...]

Total business inventories fell 1.3% m/m (-2.2% y/y) in April, following a revised 0.3% m/m decline in March. The April decline was larger than the 0.8% decline expected by the Informa Global Markets panel. Business sales collapsed [...]

• Gasoline and crude oil prices move higher. • Natural gas prices hold steady. The price for a gallon of regular gasoline rose to $2.10 per gallon (-21.4% y/y) in the week ended June 15 from $2.04 per gallon in the previous week. It [...]