Eckhoff Accounting News & Resources
FEWER HOMES ARE SELLING
Demand is high, prices are high, and inventory is slim. In view of these factors, the 4.8% year-over-year fall for existing home sales just reported by the National Association of Realtors is not surprising. It represents the largest annual decline seen since August 2014.
INFLATION SUDDENLY INTENSIFIES
The Consumer Price Index rose 0.5% in January, its greatest month-over-month advance since January 2017. Core inflation (minus food and energy prices) increased 0.3%, marking the largest monthly gain in almost 13 years.1
RETAIL SALES PACE SLOWS
Contradicting perceptions that the economy might be overheating, retail purchases fell 0.3% in January.
WALL STREET SEES ITS FIRST CORRECTION SINCE 2016
On Friday, the S&P 500 settled at 2,619.55, down 5.16% for the week. Thursday, it entered correction territory just nine days after its January 26 record close. The Dow Jones Industrial Average made even bigger headlines last week by taking two 1,000-point drops within four days, the second occurring Thursday1,2.
WAGE GROWTH PICKS UP AT LAST
In January, average hourly pay was 2.9% higher than it was a year earlier. That was the key takeaway from the Department of Labor’s latest jobs report, which noted the addition of 200,000 net new workers last month.