U.S. residential housing market construction activities slowed in March amid rising mortgage rates, elevated home prices, and buyers facing affordability issues.
Total retail sales in March rose after consumers continued to spend at retail and food service establishments. The increase in consumer spending was supported by a resilient labor market and rising wages.
The producer price index in March rose at the slowest pace in three months on a monthly basis, and annual inflation rose at the fastest pace since April 2023.
The rising costs of gasoline and shelter accounted for more than half of overall inflation in March. Consumer price inflation has stayed above 3% for nine months in a row after falling in the previous twelve months in a row, proving it harder to bring it down to 2%.
The number of job openings, hires, and separations changed little for the third month in a row in February. Job openings are sharply lower than two years ago after peaking at 12.2 million in March 2022.
New orders for durable goods rose in February, and critically important non-defense capital goods orders excluding aircraft rebounded after falling in the previous month.
Single-family home sales in February eased from the previous month but rose from a year ago. The average and median home prices declined from the previous month and fell below the price for 2023.
The Federal Reserve left its target interest rate unchanged and reiterated the possibility of as many as three rate cuts in the remainder of the year. Policymakers also lifted their estimate of economic growth in the current year sharply.
Housing construction activities picked up in February as home buyers turned to purchasing new homes amid low inventories and home affordability issues.
The measure of wholesale price inflation accelerated in February, driven in large part by the higher cost of energy, which accelerated goods price inflation.
U.S. retail and food services sales rebounded from the previous month in February, but a price -unadjusted measure showed consumers are still sticking to basics and avoiding high priced discretionary items.
U.S. international goods and trade deficits widened after exports held steady and imports advanced because of the higher price of energy. Deficits with China, Japan, and the European Union expanded.
