ShareEach day the Research staff takes a look at recently released economic indicators, addressing what these indicators mean for REALTORS® and their clients. Today’s update highlights jobless claims, the Beige Book, and the trade deficit.
- The economy continued to grow in April and May according to the Fed’s Beige Book, a collection of observations by those in business in the 12 Fed districts. New York, Philadelphia, Atlanta, and Chicago reported that the pace of growth slowed, Dallas indicated that growth was accelerating, and all other districts indicated steady growth. Real estate performance was mixed across the country but the rental market reportedly strengthened broadly.
- NAR Research produces similar reports called the Surveys of REALTOR® Sentiment/Regional Vice-Presidential Reports. These reports focus on performance in the real estate market as reported by NAR Regional Vice Presidents.
- The trade deficit shrank by $3 billion in April to $43.7 billion driven by increasing exports and a slight reduction in imports. By definition, an improved trade balance contributes to economic growth, but many factors contribute to a country’s trade balance.
- The data release covering the most recent period is jobless claims for the week ending June 4. These rose by 1,000 over the previous week to 427,000—not a huge increase, but definitely a move in the wrong direction following weeks of a slight upward trend.
- After retreating to under 400,000 in February and March—a level needed for job growth—jobless claims have increased in April and May. The 4-week average is now 424,000. Further decreases are needed in order to have meaningful job growth in June.
- By state, the data is from a week earlier. The largest increases in initial claims for the week ending May 28 were in New York (+3,187), Oregon (+1,508), Missouri (+1,158), Illinois (+1,081), Washington (+844), while the largest decreases were in California (-1,614), Wisconsin (-1,032), Massachusetts (-929), New Jersey (-882) and Texas (-659).