Last week’s economic updates included news on inflation, retail sales, and consumer sentiment, as well as the usual weekly reports on jobless claims and mortgage rates.
March Inflation Rate Slows with Retail Sales Decline
Inflation grew at a slower pace in March, with a month-to-month rate of 0.10 percent, compared to February’s 0.40 percent. The year-over-year inflation rate increased by 5.00 percent, which was lower than analysts’ predictions of 5.10 percent and February’s 6.00 percent.
Core inflation, which excludes volatile readings for fuel and food, grew by 0.40 percent in March, matching analysts’ predictions. The year-over-year reading for core inflation in March was 5.00 percent, also lower than analysts’ predictions of 5.10 percent and February’s 6.00 percent. The Fed considers the core reading as a more stable indicator of inflation trends.
Retail sales decreased by 1.00 percent in March, which was below the expected reading of –0.50 percent. Retail sales excluding autos decreased by –0.80 percent in March, while analysts predicted a reading of –0.40 percent compared to February’s reading of 0.00 percent.
Mortgage Rates Decrease, Jobless Claims Rise
Freddie Mac reported lower mortgage rates for the fifth consecutive week, with 30-year fixed rate mortgages falling by one basis point to 6.27 percent. Rates for 15-year fixed rate mortgages were also one basis point lower, averaging 5.54 percent.
First-time jobless claims rose to 239,000 claims filed, compared to the previous week’s reading of 228,000 claims filed and analysts’ expected 235,000 new claims filed. Continuing jobless claims decreased to 1.81 million ongoing claims filed, compared to the previous week’s reading of 1.82 million claims.
Consumer Sentiment Index Increases in April
The University of Michigan’s Consumer Sentiment Index for April revealed a confidence reading of 63.5, higher than the expected reading of 62 and the March reading of 62. A reading above 50 indicates that most consumers are confident about the current economic conditions.
What to Expect
This week’s economic reporting includes updates on sales of previously owned homes, housing starts, building permits issued, and U.S. housing markets. The weekly reports on jobless claims and mortgage rates will also be released. Stay tuned for more updates on the U.S. economy.
