Business Inventories / Sales Ratio

May 17, 2022 Firms are always trying to keep their inventories in line with sales.  When the economy falls into recession, typically businesses do not cut back production as quickly as sales decline, so the inventory/sales ratio rises sharply  — which is exactly...

Tone Down the Rhetoric!

May 13, 2022 We got the message.  The Fed has convinced us it is going to be tough on inflation.  But that tough talk has scared the pants off all of us.    Fed officials have suggested the funds rate is going to 2.5% by the end of this year, 3.5% by the end of 2023,...

Producer Price Index

May 12, 2022 The Producer Price Index for final demand  includes producer prices for goods, as well as prices for construction, services, government purchases, and exports and covers over 75% of domestic production. Producer prices for final demand rose 0.5% in April...

Gasoline Prices

May 11, 2022 Gasoline prices jumped $0.15 cents in the week ending May 9 to $4.33 after having fallen $0.09 in the previous week.  In South Carolina gasoline prices tend to about $0.25 below the national average or $4.08.  The EIA currently expects gasoline prices...

Consumer Price Index

May 11, 2022 The CPI rose 0.3% in April after having umped 1.2% in March.  It rose 1.3% in 2020, and 7.1% in 2021.  The year-over-year increase now stands at 8.2% and we expect the CPI to increase 8.1% in 2022. Food prices climbed 0.8% in April after having jumped...

A Case of the Jitters

May 6, 2022 In our view, it is increasingly clear that the 1.4% GDP decline in the first quarter was largely caused by supply line challenges rather than any significant drop in demand.  Early in the second quarter the monthly purchasing managers indexes continue to...