Money Talk Podcast, Friday Dec. 20, 2024

Advisors on This Week’s Show

• Kyle Tetting (www.landaas.co...)

• Art Rothschild (landaas.com/abo...)

• Adam Baley (www.landaas.co...)

(with Max Hoelzl (landaas.com/abo...) , Joel Dresang (landaas.com/abo...) , engineered by Jason Scuglik (www.landaas.co...) )
Week in Review (Dec. 16-20, 2024)
Significant Economic Indicators & Reports
Monday
No major announcements
Tuesday
The Commerce Department reported a 0.7% increase in retail sales (www.census.gov/...) in November, exceeding analyst forecasts and suggesting continued economic momentum. The rise was broadly distributed: Eight of 13 major categories had higher sales in November, led by car dealers, online retailers and home-and-garden centers, which were boosted by rebuilding following hurricanes Helene and Milton. Consumer spending declined at grocery stores as well as at bars and restaurants, where sales dipped for the first time since March. About two-thirds of U.S. economic activity is driven by consumer spending.
U.S. industrial output (www.federalrese...) fell 0.1% in November, its third drop in a row and the fourth in five months. Production declines in the mining industry and among utilities dampened the November numbers. The Federal Reserve reported manufacturing output rose for the first time in three months, led by automakers. Overall industrial production was 0.9% behind the same time last year; manufacturers were down 1%. The capacity utilization rate, considered an early indicator of inflationary pressure, ticked down for the third month in a row. It has been below its long-term average since April 2021.
Wednesday
The pace of housing starts (www.census.gov...) continued slowing in November, the Commerce Department reported. The annual rate of new construction slipped nearly 2% from October and was about 15% below where it was in November 2023. Starts for single-family houses rose 6% but were 10% below their year-earlier pace. Authorized building permits, an indicator of future construction, rose both overall and for single-family houses. Data from the report showed most housing activity down from levels just before the pandemic, when construction had just recovered from the Great Recession.
Thursday
The U.S. gross domestic product (www.bea.gov/si...) grew at an annual pace of 3.1% in the third quarter of 2024, according to a final estimate by the Bureau of Economic Analysis. The economy’s growth rate was up from an initial estimate of 2.8%, as exports and consumer spending gained momentum. The revision included a lower estimate on inventory buildup as well as higher imports, which detract from GDP. Third-quarter growth improved from the second quarter rate of 3%.
The four-week moving average for initial unemployment claims (www.dol.gov/ui...) rose for the third week in a row, the Labor Department reported. The gauge of employers’ willingness to release workers was 38% below the long-term average and up 8% from the low just before the COVID-19 pandemic. Total jobless claims rose 16% in the latest week to just below 2 million, up 9% from the year before.
The Conference Board’s index of leading economic indicators (www.conference...) increased 0.3% in November, the first gain since February 2022. The index dropped 1.6% since May, narrowing a 1.9% decrease in the previous six months. The business research group said it expected the U.S. economy to finish 2024 with a 2.7% advance in GDP. It forecast a 2% growth in the economy in 2025.
Existing home sales (www.nar.realto...) rose 4.8% in November, edging above an annual sales rate of 4 million for the first time since March. The sales pace was up 6% from November 2023, the National Association of Realtors reported. The trade group said prospective home buyers are settling in on stagnant mortgage rates as homeowners are capitalizing on a collective $15 trillion in increased home equity in the last four years. Historically low inventories continued to push up prices. The median sales price of $406,100 was 4.7% higher than in November 2023, which marked the 17th consecutive year-to-year gain.
Friday
By far the biggest driver of the U.S. economy, consumer spending (www.bea.gov/si...) rose 0.4% in November, while inflation ticked up for the second month in a row. The Bureau of Economic Analysis reported that personal income rose 0.3% in November, whi...