The latest data paints a picture of an economy holding together under pressure but struggling to build momentum.
- The Federal Reserve kept the funds rate unchanged at 3.5% to 3.7% in late March, with only one policymaker pushing for an immediate cut.
- Producer prices rose 0.7% in February, bringing year‑over‑year PPI to 3.4%, the highest annual upturn in a year.
- Core producer price inflation continued its steady climb in February, marking 10 consecutive months of increase.
- The Personal Consumption Expenditures (PCE) price index rose 2.8% year-over-year in January, while core PCE came in at 3.1%, showing inflation remains sticky.
- Real consumer spending barely moved, and the savings rate slipped to 4.5% in January as households stretched to maintain their spending.
- Job openings in the JOLTS report ticked up in January, but hires and quits stayed flat, reflecting a labor market stuck in neutral.
- New home sales fell nearly 18% in January to a 587,000 annual pace.
- Pending home sales rose 1.8% in February, with the Midwest leading the improvement.
- The average 30‑year mortgage rate climbed to 6.4% in late March, the highest since October, causing mortgage applications to drop more than 10%.
- Rising oil prices kept upward pressure on Treasury yields, adding strain for prospective borrowers.
For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.
