After another month of historical jobs gain, the great American comeback is as strong as ever.
Thanks to President Trump’s unprecedented leadership, the United States’ economy is rebounding at an unprecedented pace.
Let’s take a closer look at this weeks economic news:
1. U.S. Retail Sales Surge Higher in June To Pre-Pandemic Levels
U.S. retail sales exceeded forecasts in June for a second straight month as more businesses reopened and expanded jobless benefits padded the wallets of the unemployed.
The value of retail purchases increased 7.5% from the prior month after an upwardly revised record 18.2% surge in May, according to Commerce Department data out Thursday. The median estimate in a Bloomberg survey of economists called for a 5% gain for June.
As states restarted their economies and millions of Americans headed back to work, consumers opened up their pocketbooks more freely. The pickup in June brought the value of retail sales about in line with pre-pandemic levels, supporting businesses and overall economic growth.
2. U.S. industrial output has second straight solid gain in June
Industrial production rose 5.4% in June, the second gain after a steep drop in March and April, the Federal Reserve reported Wednesday. Wall Street economists had forecast a 4.1% gain, according to a MarketWatch survey. May output was up 1.4%.
This followed a record 12.5% drop in April and a 4.4% decline in March.
Manufacturing rose 7.2% in June. Auto production jumped for the second straight month but remains nearly 25% below its February level. All categories of production rise except for mining, which includes oil production.
3. U.S. manufacturing output surges in June
U.S. factory output increased for a second straight month in June as motor vehicle production accelerated amid the reopening of businesses.
The Federal Reserve said on Wednesday manufacturing production increased 7.2% last month after climbing 3.8% in May.
Economists polled by Reuters had forecast manufacturing output rising 5.6% in June.
4. July Empire state index in positive territory for the first time since the pandemic began
Business activity in New York state increased in July for the first time since the pandemic began in March, according to the New York Fed’s Empire State Manufacturing Survey released Wednesday. The Empire State business conditions index rose to 17.2 in July from negative 0.2 in the prior month. A reading above zero indicates improving conditions. Economists had expected a reading of 8.9, according to a survey by Econoday.
Forty-one percent of manufacturers reported that conditions were better in early July than in June, up from 36% in the prior survey.
The new-orders index rose 14.5 points to 13.9, indicating that orders increased. Shipments climbed 15.2 points to 18.5.
The index for employees rose 3.9 points to 0.4 in July, signaling that employment levels were steady.
5. Small-Business Owners’ Optimism Ticks Up From April
While small-business owners remain less optimistic about their current and future business situations than they were pre-pandemic, the latest Wells Fargo/Gallup Small Business Index survey highlights improvement in sentiment since early April. Two-thirds (67%) of small-business owners are more optimistic than pessimistic about their business, up from 47% in early April but still off from the 80% in January, before the weight of the pandemic hit. Interviews were conducted May 29-June 5, prior to the recent increase in coronavirus cases nationally and setbacks in reopening plans in some states.
In addition to their generalized optimism about their business, small-business owners express increased positivity about their financial situation, revenue and cash flow over the next 12 months.