Forecast: Global economy rebounding, faces multiple threats
The Organization for Economic Cooperation and Development predicted global output would rise 5.8%, raising its forecast from 4.8% during its previous outlook in December.
Economy
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Biden’s $6T budget: Social spending, taxes on business
President Joe Biden on Friday unveiled a budget for next year that’s piled high with new safety net programs for the poor and middle class, but his generosity depends on taxing corporations and the wealthy.
U.S. consumers boosted spending in April as inflation surged
The April gain was led by a 1.1% rise in spending on services, the sector that covers airline travel, hotels and restaurants—areas that were devastated by the pandemic-caused shutdowns a year ago.
First quarter GDP unchanged at robust 6.4% annual rate
The rise in the gross domestic product, the economy’s total output of goods and services, was the same as the government’s first look one month ago, the Commerce Department reported Thursday.
Survey: Business economists foresee best growth in 37 years
With viral cases dwindling, consumers increasing spending and more businesses reopening and hiring, economists have been upgrading their forecasts.
Retail sales were flat in April as stimulus spending waned
The report on Friday suggests Americans were heading out last month to eat instead of shop.
U.S. unemployment claims drop to 473,000, a new pandemic low
The number of weekly jobless claims—a rough measure of the pace of layoffs—has fallen significantly from a peak of 900,000 in January.
Consumer prices shot up 0.8% in April as inflation worries escalate
The acceleration in prices, which has been building for months, has unsettled financial markets and raised concerns that it could weaken the economic recovery from the pandemic recession.
U.S. employers added just 266K jobs in April as hiring slowed
Most economists expect job growth to strengthen as more vaccinations are administered and trillions in government aid spreads through the economy.
Powell sees need to help most vulnerable in uneven recovery
Federal Reserve Chairman Jerome Powell said that labor force participation had declined 4 percentage points for Black and Hispanic women compared to 1 percentage point for white women and about 2 percentage points for all men.
Bohanon & Curott: Inflation higher than 4% is likely in next five years
Inflation is certain to rise unless the Fed removes some of the newly created money from circulation as velocity rises.
March U.S. incomes surge as relief rolls out, spending jumps
U.S. consumer spending rose at the fastest pace in nine months while incomes soared by a record amount in March, reflecting billions of dollars in government support payments.
U.S. wages, benefits jump as economy reopens
The figures suggest that as the economy rapidly reopens, businesses are already providing higher pay and benefits to pull workers back into the job market.
Major companies sound alarm over commodity price hikes
Plastic, paper, sugar, grain and other commodities are all getting more expensive as demand outpaces supply. Companies are also paying more for shipping as fuel costs rise and ports experience longer delays because of congestion.
U.S. economy accelerated at a robust 6.4% rate in first quarter
Growth in the current April-June period is expected to be faster still: Some economists say it could reach a 10% annual pace or more, driven by a surge in people traveling, shopping, dining out and otherwise resuming their spending habits.
IBJ Podcast: Pete The Planner says stimulus ahead ‘is going to blow people’s minds’
The U.S. economy is on the verge of potentially the greatest boom time of all time, according to Peter “Pete the Planner” Dunn. It will be fueled at least in part by the enhanced child tax credit, which is part of the American Rescue Plan stimulus package.
U.S. jobless claims fall to pandemic-low 547,000
Weekly jobless claims are down sharply from a peak of 900,000 in early January, the Labor Department said Thursday.
Poll: Only 15% of Americans worse off a year into pandemic
While most Americans have weathered the pandemic financially, about 38 million say they are worse off now than before the outbreak began in the United States.
U.S. budget deficit jumps to record $1.7 trillion
The deficit has been driven higher by trillions of dollars in support Congress has passed in successive economic rescue packages since the pandemic struck in early March 2020.
Fed’s Powell sees U.S. boom ahead, with COVID still a risk
Federal Reserve Chairman Jerome Powell said that he doesn’t expect to raise the Fed’s benchmark interest rate, currently pegged at nearly zero, this year.