U.S. trade deficit in March soared to a record high $110 billion after hovering between $40 billion and $50 billion for decades before the Covid-19 pandemic. Steady rise in goods deficit and the fall in services surplus has led to consistent record monthly deficits for two years in a row.
The number of available jobs and job resignations reached the highest levels in March since the record keeping began in December 2000.
U.S. construction spending rose less than expected in March on the fall in public construction.
Personal income increased 0..5% in March after rising by upwardly revised 0.7% in February. Personal Consumption expenditures index, the Fed's preferred gauge of inflation, in March increased 6.6% after rising 6.3% in February.
Seasonally adjusted weekly jobless claims fell 5,000 at the end of last week to 180,000. The 4-week moving average was revised up to 179,500.
The economy unexpectedly declined in the first quarter at an annual pace of 1.4% on the rising trade imbalance and falling government spending and decelerating private investments.
Weekly jobless claims edged up slightly to 184,000 for the week ending April 16 and the continued claims dropped to a low last seen in February 1970.
Seasonally adjusted housing starts in March rose 0.3% to an annual rate of 1.79 million units from the revised February estimate of 1.788 million and 3.9% higher from the 1.727 million rate a year ago. Single-family housing starts fell to a rate of 1.2 million units, a decline of 1.7% from the revised rate of 1.221 million rate in the previous month, Housing completions in the month declined 4.5% to a rate of 1.3 million from February revised rate of 1.33 million and plunged 13% from a year ago. Single-family home completions fell 6.4% to a rate of 1 million from the February revised rate.
China's economy expanded at 4.8% in the first quarter from a year ago and rose 1.3% sequentially, according to the National Bureau of Statistics. Fixed assets investment increased 9.3% from a year ago and Shanghai lockdown in March most likely shaved off 0.4% to 0.5% from the GDP growth data. Industrial production growth slowed to 5% from 7.5% increase in two months to February. Retail sales declined 3.5% reversing 6.7% gain in the prior two-month period. National urban unemployment rate increased to 5.8% in March from 5.5% in February.
Retail and food services sales in March rose 0.5% from the previous month and 6.9% from a year ago. February sales was revised higher to 0.8% from 0.3%. Total sales in the quarter to March rose 12.9% from the year ago period. March retail sales were up 0.4% from February and were up 5.5% from a year ago and gasoline sales soared 37% and food services sales gained 19.5% from last year.
Initial jobless claims in the last week rose to 185,000 from the revised 167,000 in the previous week, according to the Labor Department. The previous week's claims were revised higher 1,000. Insured unemployment rate was 0.1% in the last week matching the rate in the prior week. Continuing claims for the week ending on April 2 were 1.475 million, 48,000 lower than the prior week.
The latest consumer prices and supplier price inflation reports showed a surge in food prices in March. Tuesday's report from the Bureau of Labor Statistics said food prices rose 8.8% in the month. Milk prices gained 13.3%, flour rose 14.2%, fruits and vegetables increased 8.5%. However, fertilizer prices are still rising and farmers are limiting planting and fuel prices are still going up.
CF NTR
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The producer price index in March rose 1.4% adjusted for seasonality following 0.9% gain in February and 1.2% rise in January. The index rose 11.2% from a year ago and the largest increase since the series began in November 2010. Core PPI which excludes food, energy, and trade services rose 0.9% in the month and 7% from a year ago. Over half of the increase was driven by a surge in energy.