Latest news with #LuciaMutikani
Zawya
5 days ago
- Business
- Zawya
US retail sales beat expectations in June
U.S. retail sales rebounded more than expected in June, but some of the increase likely reflected higher prices for some goods exposed to tariffs. Retail sales increased 0.6% last month after an unrevised 0.9% drop in May, the Commerce Department's Census Bureau said on Thursday. Economists polled by Reuters had forecast retail sales, which are mostly goods and are not adjusted for inflation, edging up 0.1%. Part of the rise in retail sales last month could be due to tariff-driven price increases rather than volumes. Inflation data this week showed solid increases in June in the prices of tariff-sensitive goods like household furnishings and supplies, appliances, sporting goods and toys. Retail sales excluding automobiles, gasoline, building materials and food services increased 0.5% last month after a downwardly revised 0.2% in May. These so-called core retail sales, which correspond most closely with the consumer spending component of gross domestic product, were previously reported to have increased 0.4% in May. "All told, the household sector still appears to be holding up, but a moderation in consumer spending appears under way," said Sam Bullard, a senior economist at Wells Fargo. (Reporting by Lucia Mutikani, Editing by Nick Zieminski)
Yahoo
01-07-2025
- Business
- Yahoo
US manufacturing mired in weakness as tariffs bite
By Lucia Mutikani WASHINGTON (Reuters) -U.S. manufacturing remained sluggish in June, with new orders subdued and prices paid for inputs creeping higher, suggesting that the Trump administration's tariffs on imported goods continued to hamper businesses' ability to plan ahead. The Institute for Supply Management (ISM) said on Tuesday that its manufacturing PMI nudged up to 49.0 last month from a six-month low of 48.5 in May. It was the fourth straight month that the PMI was below the 50 mark, which indicates contraction in the sector that accounts for 10.2% of the economy. Economists polled by Reuters had forecast the PMI little changed at 48.8. The survey joined weak data on the housing market, consumer spending and swelling unemployment rolls that have suggested the economy's underlying momentum slowed further in the second quarter even as gross domestic product probably rebounded as the drag from a record trade deficit faded due to falling imports. A measure of domestic demand grew at its slowest pace in more than two years in the January-March quarter. President Donald Trump's sweeping tariffs, which have led businesses and households to front-run imports and goods purchases to avoid higher prices from duties, have muddled the economic picture. Economists warned it could take time for the tariff-related distortions to wash out of the economic data. The PMI last month was likely lifted by longer delivery times, which under normal circumstances would be related to strong demand. The extensive tariffs have caused bottlenecks in the supply chain, resulting in factories waiting longer for raw material deliveries. The ISM survey's supplier deliveries index slipped to 54.2 from 56.1 in May, though it was still high with a reading above 50 indicating slower deliveries. The ISM has reported "ongoing delays in clearing goods through ports of entry." The situation, however, appears to have improved slightly, with the survey's imports measure rising to a still-subdued 47.4 after slumping to 39.9 in May. Manufacturing is heavily reliant on imported raw materials. Though production at factories picked up last month, it was probably the result of manufacturers working through backlog orders. The ISM survey's forward-looking new orders sub-index dropped to 46.4 from 47.6 in May. This measure has now contracted for five consecutive months. Its gauge of prices paid by factories for inputs ticked up to 69.7 from 69.4 in the prior month. With manufacturers facing weak demand and higher prices for inputs, employment declined further last month. The survey's measure of manufacturing employment fell to 45.0 from 46.8 in May. The ISM has noted an "acceleration of headcount reductions due to uncertain near- to mid-term demand." (Reporting By Lucia Mutikani; Editing by Chizu Nomiyama) Sign in to access your portfolio
Yahoo
01-07-2025
- Business
- Yahoo
US manufacturing mired in weakness as tariffs bite
By Lucia Mutikani WASHINGTON (Reuters) -U.S. manufacturing remained sluggish in June, with new orders subdued and prices paid for inputs creeping higher, suggesting that the Trump administration's tariffs on imported goods continued to hamper businesses' ability to plan ahead. The Institute for Supply Management (ISM) said on Tuesday that its manufacturing PMI nudged up to 49.0 last month from a six-month low of 48.5 in May. It was the fourth straight month that the PMI was below the 50 mark, which indicates contraction in the sector that accounts for 10.2% of the economy. Economists polled by Reuters had forecast the PMI little changed at 48.8. The survey joined weak data on the housing market, consumer spending and swelling unemployment rolls that have suggested the economy's underlying momentum slowed further in the second quarter even as gross domestic product probably rebounded as the drag from a record trade deficit faded due to falling imports. A measure of domestic demand grew at its slowest pace in more than two years in the January-March quarter. President Donald Trump's sweeping tariffs, which have led businesses and households to front-run imports and goods purchases to avoid higher prices from duties, have muddled the economic picture. Economists warned it could take time for the tariff-related distortions to wash out of the economic data. The PMI last month was likely lifted by longer delivery times, which under normal circumstances would be related to strong demand. The extensive tariffs have caused bottlenecks in the supply chain, resulting in factories waiting longer for raw material deliveries. The ISM survey's supplier deliveries index slipped to 54.2 from 56.1 in May, though it was still high with a reading above 50 indicating slower deliveries. The ISM has reported "ongoing delays in clearing goods through ports of entry." The situation, however, appears to have improved slightly, with the survey's imports measure rising to a still-subdued 47.4 after slumping to 39.9 in May. Manufacturing is heavily reliant on imported raw materials. Though production at factories picked up last month, it was probably the result of manufacturers working through backlog orders. The ISM survey's forward-looking new orders sub-index dropped to 46.4 from 47.6 in May. This measure has now contracted for five consecutive months. Its gauge of prices paid by factories for inputs ticked up to 69.7 from 69.4 in the prior month. With manufacturers facing weak demand and higher prices for inputs, employment declined further last month. The survey's measure of manufacturing employment fell to 45.0 from 46.8 in May. The ISM has noted an "acceleration of headcount reductions due to uncertain near- to mid-term demand." (Reporting By Lucia Mutikani; Editing by Chizu Nomiyama) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-06-2025
- Business
- Yahoo
US business activity moderates; price pressures building up
By Lucia Mutikani WASHINGTON (Reuters) -U.S. business activity slowed marginally in June, though prices increased further amid President Donald Trump's aggressive tariffs on imported goods, suggesting that an acceleration in inflation was likely in the second half of the year. The survey from S&P Global on Monday showed measures of prices paid by factories for inputs and charged for finished products jumped to levels last seen in 2022. Nearly two-thirds of manufacturers reporting higher input costs attributed these to tariffs while just over half of respondents linked increased selling prices to tariffs, S&P Global said. That supports economists' expectations that inflation would surge from June following mostly benign consumer and producer price readings in recent months. Economists have argued that inflation has been slow to respond to Trump's sweeping import duties because businesses were still selling stock accumulated before the tariffs came into effect. S&P Global's flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, slipped to 52.8 this month from 53.0 in May. A reading above 50 indicates expansion in the private sector. The survey's flash manufacturing PMI was unchanged at 52.0. Economists polled by Reuters had forecast the manufacturing PMI easing to 51.0. Its flash services PMI dipped to 53.1 from 53.7 in May. Economists had forecast the services PMI falling to 53.0. The survey was conducted in the June 12-20 period, before the U.S. joined in the conflict between Israel and Iran. "The June flash PMI data indicated that the U.S. economy continued to grow at the end of the second quarter, but that the outlook remains uncertain while inflationary pressures have risen sharply in the past two months," said Chris Williamson, chief business economist at S&P Global Market Intelligence. So-called hard data on retail sales, housing and the labor market have painted a picture of an economy that was softening because of the uncertainty caused by the constantly shifting tariffs policy. The escalation in tensions in the Middle East added another layer of uncertainty. INFLATION POISED TO ACCELERATE The S&P Global survey's measure of new orders received by businesses declined to 52.3 from 53.0 in May. A measure of prices paid by businesses for inputs fell to 61.6 from 63.2 last month. But manufacturers faced higher input costs, with this price gauge jumping to 70.0 this month. That was the highest reading since July 2022 and followed 64.6 in May. Prices paid for inputs by services businesses remained elevated, with tariffs, higher financing, wage and fuel costs cited. The pace of increase, however, slowed amid competition. The survey's measure of prices charged by businesses for goods and services remained at lofty levels as manufacturers passed on the increased costs from tariffs to consumers. The prices charged gauge for manufacturers shot up to 64.5, the highest since July 2022, from 59.7 in May. Rising oil prices because of the strife in the Middle East are seen contributing to higher inflation. The Federal Reserve last week kept the U.S. central bank's benchmark overnight interest rate in the 4.25%-4.50% range, where it had been since December. Fed Chair Jerome Powell told reporters he expected "meaningful" inflation ahead. "The data therefore corroborate speculation that the Fed will remain on hold for some time to both gauge the economy's resilience and how long this current bout of inflation lasts for," Williamson said. Employment picked up this month, mostly driven by manufacturing, where some factories are experiencing order backlogs. S&P Global noted a slight rise in optimism among manufacturers "in part reflecting hopes of greater benefits from trade protectionism." It, however, added that "companies generally remained less upbeat than prior to the inauguration of President Trump." Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
18-06-2025
- Business
- Yahoo
US weekly jobless claims fall, but still elevated
WASHINGTON (Reuters) -The number of Americans filing new applications for unemployment benefits fell last week, but stayed at levels consistent with a further loss of labor market momentum in June. Initial claims for state unemployment benefits dropped 5,000 to a seasonally adjusted 245,000 for the week ended June 14, the Labor Department said on Wednesday. Economists polled by Reuters had forecast 245,000 claims for the latest week. The report was released a day early because of the Juneteenth National Independence Day holiday on Thursday. Claims are in the upper end of their range for this year and could remain there, with non-teaching staff in some states eligible to file for unemployment benefits during the summer school holidays. Though some technical factors accounted for the elevation in claims, there has been a rise in layoffs, with economists saying President Donald Trump's broad tariffs had created a challenging economic environment for businesses. The claims data covered the period during which the government surveyed businesses for the nonfarm payrolls component of June's employment report. Federal Reserve officials wrapping up their two-day policy meeting on Wednesday are expected to leave the U.S. central bank's its benchmark overnight interest rate in the 4.25%-4.50% range, where it has been since December, while monitoring the economic fallout from the import duties and the conflict between Israel and Iran. The still historically low layoffs have accounted for much of the labor market stability, with the hiring side of the equation soft amid hesitancy by employers to increase headcount because of the unsettled economic environment. Nonfarm payrolls increased by 139,000 jobs in May, down from 193,000 a year ago. Data next week on the number of people receiving benefits after an initial week of aid, a proxy for hiring, could shed more light on the state of the labor market in June. The so-called continuing claims dropped 6,000 to a seasonally adjusted 1.945 million during the week ending June 7. Recently laid off workers are struggling to find work. (Reporting By Lucia Mutikani; Editing by Chizu Nomiyama)
