U.S. Economic Indicators
The unemployment rate is the percentage of the labor force that is without a job and actively seeking employment. The labor force comprises individuals aged 16 and older who are either employed or actively looking for work. To be considered actively seeking employment, individuals must have taken specific steps to find a job within the past four weeks. People who are not working and not looking for work, such as retirees, students, and discouraged workers, are excluded from the labor force.
New Home Mortgage Applications for United States is a measure of the number of applications submitted for mortgages to purchase newly constructed homes. It is a leading indicator of future home sales and construction activity. The Mortgage Bankers Association (MBA) releases a weekly report on mortgage applications, which includes data on new home purchase applications. This data is used by economists, investors, and policymakers to track the health of the housing market.
The monthly supply of new housing metric, also known as the months’ supply of new homes, is an important indicator in the real estate market that measures the number of months it would take for the current inventory of new homes for sale to be sold, given the current sales pace. It helps to gauge the balance between supply and demand in the housing market.
Calculation
The monthly supply of new housing is calculated using the following formula:
Months’ Supply=Current Inventory of New Homes for SaleMonthly Sales Rate of New Homes\text{Months’ Supply} = \frac{\text{Current Inventory of New Homes for Sale}}{\text{Monthly Sales Rate of New Homes}}
- Current Inventory of New Homes for Sale: This is the total number of new homes that are currently available for sale.
- Monthly Sales Rate of New Homes: This is the number of new homes sold in the most recent month.
The total vehicle sales metric measures the number of new cars and light trucks sold within a specific period, typically reported on a monthly, quarterly, or annual basis. This metric is a critical indicator of the automotive industry’s health and provides insights into consumer confidence and economic conditions.
The personal savings rate is the percentage of disposable income people save rather than spend. Disposable income is the amount of money people have left after paying taxes. Personal savings is the portion of disposable income that is not spent on consumption.
“Real gross domestic product (GDP) increased at an annual rate of 1.4 percent in the first quarter of 2024, according to the “third” estimate. In the fourth quarter of 2023, real GDP increased 3.4 percent. The increase in the first quarter primarily reflected increases in consumer spending, housing investment, business investment, and state and local government that were partly offset by a decrease in inventory investment. Imports, which are a subtraction in the calculation of GDP, increased.”
Global Economic Indicators
The overall global debt level has decreased for the second consecutive year, though it remains significantly higher than before the pandemic. According to recent data, total global debt was equivalent to 238% of the total value of all goods and services produced worldwide (GDP) last year. This is 9% higher than the level seen in 2019. Measured in US dollars, the total debt amounted to $235 trillion, which is $200 billion more than in 2021.
US Crude Oil First Purchase Prices refer to the initial cost paid for crude oil as it enters the United States, representing the expense of importing crude oil into the country. This data is crucial for understanding several key aspects:
- Import Costs: It provides insight into how much the US is spending on foreign oil, influencing trade balances and economic policies.
- Market Trends: Price fluctuations can indicate global oil supply and demand dynamics, helping analysts predict future market movements.
- Economic Impact: Changes in import prices can directly affect domestic fuel costs and overall inflation, influencing consumer prices and economic stability.
By tracking these prices, analysts and policymakers can assess the nation’s reliance on foreign oil and its potential vulnerability to price shocks, helping to inform decisions on energy policy and economic strategy.
