Latest news with #AtlantaFed
Zawya
5 days ago
- Business
- Zawya
US core capital goods orders unexpectedly fall in June
New orders for key U.S.-manufactured capital goods unexpectedly fell in June, suggesting a pullback in business spending on equipment as the boost from front-loading of activity ahead of tariffs on imports faded. Non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, dropped 0.7% last month after an upwardly revised 2.0% rebound in May, the Commerce Department's Census Bureau said on Friday. Economists had forecast these so-called core capital goods orders would rise 0.2% after a previously reported 1.7% jump in May. Shipments of core capital goods increased 0.4% after rising 0.5% in May. Business spending on equipment accelerated sharply in the first quarter amid front-running ahead of President Donald Trump's aggressive and broad tariffs on imports. While some of the tariff-related spending to avoid even higher goods prices has persisted, uncertainty over where tariff levels will eventually settle has prompted some businesses to hold off capital expenditures. A survey from S&P Global on Thursday showed its flash manufacturing PMI contracted in July for the first time since December. S&P Global noted that "any protectionist benefits of import tariffs were often outweighed by concerns over higher prices and rising costs." The Atlanta Fed is forecasting economic growth will rebound at a 2.4% annualized rate in the second quarter, largely reflecting a reversal in import flows, which contributed to GDP contracting at a 0.5% pace in the first quarter. (Reporting by Lucia Mutikani; Editing by Paul Simao)
Axios
17-07-2025
- Business
- Axios
Forecasters hand-wring over tariffs, but the economy's still doing fine
American consumers are spending freely, unemployment filings are low and executives feel more optimistic about business prospects. Why it matters: A trade war-stunted economy remains something forecasters hand-wring about, but it's not the reality on the ground. Economic activity wrapped the second quarter on stronger footing, with consumers spending plenty after a tariff front-loading shopping spree earlier this year. It doesn't look like an economic boom time, but it's also not the stagnation that looked possible just months earlier. Driving the news: Retail sales, which aren't adjusted for inflation, rose by 0.6% in June — more than double the increase that economists anticipated. That came after a sharp pullback in May, when retail sales fell by nearly a full percentage point. It raised fears about a heightened sense of caution among consumers. Spending increased in all but three categories: department stores, furniture retailers and electronics stores. Sales at gasoline stations were flat. Miscellaneous retailers (a group that includes florists, pet supply stores and more), auto dealerships and home improvement stores saw the biggest increase in sales. What they're saying:"Delayed tariff price increases and steady income growth continue to fuel spending despite weak survey data indicating building concerns by households," Nationwide senior economist Ben Ayers wrote in a note. "The strong June for retail sales should support a solid rebound for real GDP growth in the second quarter," Ayers added — but warned that "tariff uncertainty hangs over the outlook." Zoom out: The data follows further confirmation that aggregate layoffs remain low, after a spike in filings earlier this year that stoked concern about weaker labor market trends. Filings for unemployment benefits fell by 7,000 last week to 221,000, the fifth straight week of declines. Survey results from the Philadelphia Fed district — including Delaware and parts of New Jersey and Pennsylvania — showed manufacturers anticipate more hiring and growth over the next six months. The intrigue: The Atlanta Fed GDPNow reading shows 2.6% growth in the second quarter, helped by normalizing imports after a first-quarter rush. Reality check: The economy is not out of the woods, especially as continued trade tensions threaten higher prices for consumers. The Philadelphia Fed survey showed forecasts for stronger activity came alongside expectations of higher prices paid and received. Import prices for consumer goods rose 0.4% in June, the largest one-month increase in over a year. That is before the tariff effect, for which the data does not account. Continued unemployment filings — that is, those collecting benefits for multiple weeks — rose to 1.96 million in early July, ticking up from the previous week, pointing to sluggish hiring for those who do lose their jobs.
Reuters
16-07-2025
- Business
- Reuters
Fed's Bostic: Recent data show price pressures may be building
WASHINGTON, July 16 (Reuters) - Recent data on consumer inflation showed price pressures may be building in the wake of rising import taxes imposed by the Trump administration, Atlanta Fed president Raphael Bostic said on Wednesday. "We may be at an inflection point," Bostic said a day after data for June showed prices rising faster than the month before, with particularly large increases for some categories of heavily imported goods. "The headline number moved away from our target, not towards seen the highest increase in prices that we've seen all year."
Yahoo
16-07-2025
- Business
- Yahoo
Fed's Bostic: Recent data show price pressures may be building
WASHINGTON (Reuters) -Recent data on consumer inflation showed price pressures may be building in the wake of rising import taxes imposed by the Trump administration, Atlanta Fed president Raphael Bostic said on Wednesday. "We may be at an inflection point," Bostic said a day after data for June showed prices rising faster than the month before, with particularly large increases for some categories of heavily imported goods. "The headline number moved away from our target, not towards seen the highest increase in prices that we've seen all year." Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
03-07-2025
- Business
- Bloomberg
Fed's Bostic Urges Patience Amid Uncertainty, Resilient Economy
Federal Reserve Bank of Atlanta President Raphael Bostic called for patience amid uncertainty over economic policy and said a wait-and-see approach can help to ensure officials don't have to reverse course on interest rates. 'I believe a period characterized by such widespread uncertainty is no time for significant shifts in monetary policy,' Bostic said Thursday at an event in Frankfurt. 'That is especially the case against the backdrop of a still resilient macroeconomy, which offers space for patience.'
