Last week, the economy, inflation, and how they affect the lives of Americans took center stage. Going to the supermarket or gas station has become more painful than last year, and rising costs are impacting decisions for both households and businesses.
Here’s a snapshot of notable economic data and news from the past week and what it means for you.
Consumers remain pessimistic about the economy
American attitude towards economy This month there has been some improvement gasoline prices have fallenbut their outlook remains mostly negative by historical standards.
The Conference Board said on Tuesday: consumer confidence index The index rose 0.6 points to 91.2 in June, but this figure is still lower than the previous year’s 95.2. Worsening consumer attitudes after the Iran war caused oil and gas prices to rise, fueling inflation and reducing Americans’ inflation-adjusted incomes. Before the pandemic, the index regularly exceeded 120.
The report suggests that consumer confidence is only slowly recovering from the blow from the Iran war.
US employment falls in June
US employers withdrew employment Jobs rose by just 57,000 last month, less than half of the previous month, showing that businesses remain cautious about the economic outlook.
Ministry of Labor said on thursday The unemployment rate has fallen to a low level of 4.2% from 4.3% in May, but the main reason for this drop is that many unemployed people have given up looking for work and are no longer counted as unemployed.
The numbers suggest businesses remain wary of the health of the economy, with inflation at a three-year high and consumer confidence near post-pandemic lows. The initially reported strong employment gains in April and May have also been revised downward.
The number of applications for unemployment relief in the United States decreases
U.S. claims for unemployment aid edged down last week as layoffs remained at historically healthy levels.
The number of Americans who applied for unemployment benefits in the week ending June 27 fell by 1,000 to 215,000, the Labor Department said Thursday. That’s less than the 225,000 new application forecasts by analysts surveyed by data firm FactSet.
The number of weekly applications for unemployment benefits is considered representative of layoffs in the United States and is close to a real-time indicator of the health of the job market.
The four-week rolling average of unemployment insurance claims, which somewhat calms the weekly noise, fell by 2,500 to 222,000.
Mortgage rates fall to lowest level in 7 weeks
average long term usa mortgage interest rate This week it fell to its lowest level since mid-May, easing borrowing costs for prospective homebuyers.
Mortgage buyer Freddie Mac announced Thursday that its benchmark 30-year fixed-rate mortgage rate fell to 6.43% from 6.49% the previous week. A year ago, the average interest rate was 6.67%.
Average interest rates have hovered around 6.5% for several months since the policy began. war between usa and iran It began in late February and disrupted the flow of crude oil from the Persian Gulf to customers around the world. This caused a sharp rise in the price of crude oil, leading to a sharp increase in the price of crude oil. inflation, bond yields and mortgage interest rates.
US labor market remains resilient in May
us Job information The number of workers in the US remained surprisingly high at 7.6 million in May, as the US labor market remained resilient in the face of the economic shock of the Iran war.
Forecasters had expected employers to announce only 7 million job openings in May.
The job market is strong, but not necessarily booming. Layoffs increased in May, with the number of job departures increasing only slightly, a sign of confidence in the future. That’s according to Bureau of Labor Statistics data released Tuesday.
Employers advertise jobs but don’t actually hire. Total employment, before counting the unemployed and those who left the workforce, fell from 5.26 million in April to 5.17 million in May. When the job market was booming from mid-2021 to mid-2023 after the coronavirus lockdown, total monthly employment regularly exceeded 6 million people.
