Are you sitting? Breitbart Business Digest now begins with darker economic news.
The primary data we are currently waiting for is the National Home Contractors Association (NAHB) index, which reflects the health of home builders. Yes, and it doesn’t feel good. The mood of the builders has already dropped by 55, 12 points. This is the biggest drop in a month. Non-stop with one exception. (April 2020 not included.. As you remember, the world decided to shut down at this time.)
The good news here is that a number above 50 is still considered positive. With soaring interest rates, ever-increasing costs due to inflation, and other supply chain bottlenecks, this is the little miracle everyone wants to build.
While the rich are relatively insulated from bad news, ordinary Americans suffer terribly. NAHB Chief Economist Robert Dietz noted that “significant segments of the homebuyer population have no market value.” This is the standard model in our current economic environment. According to a recent Primerica study, 77 percent of middle-income families are preparing for a recession with almost three-quarters cut in their spending. Meanwhile, credit card debt continues to rise.
Sales in local housing markets fell as housing stocks rose. California stands out here; Golden State sales fell 20.9% year-on-year.
Also in economic news, US stocks fell later in the day after rising earlier in the day. The drop is largely due to Apple’s report that it aims to slow supply and spending. Goldman Sachs also announced today that it plans to cut costs, including layoffs.
Finally, if you’re wondering how President Biden’s trip to Saudi Arabia has affected oil prices, they rose on Monday. This put an end to a modest drop in oil prices, possibly due to low demand due to the lockdown in China. Let’s see if this trend will continue.
All these are clear reminders that the economy is far from developing.
Source: Breitbart
