The first economic data released this week in the United States reinforced the theme that labor supply and demand are struggling to come into balance. Total job openings declined modestly in August, but at 10.4 million, they remain roughly 50% above their pre-COVID levels. Despite the decline, a few sectors saw job openings increase, such as transportation, warehousing and utilities. Perhaps more interesting, the quit rate jumped 0.2 percentage points in August and hit the highest level on record (see chart). Quits increased the most in accommodation & food services, which makes sense given that significant upward pressure on wages in that industry is likely keeping competition for workers intense. A high quit rate is typically a sign that workers are confident they can voluntarily leave their current job and find gainful employment elsewhere. Based off of the weak labor supply numbers in last week's September employment report, we doubt the September job openings and labor turnover data to be released next month will show supply and demand reaching any kind of balance. As we have written before, we expect the labor supply picture to resolve slowly over time rather than all at once
Wells Fargo Economics & Financial Report / Nov 21, 2022
The resiliency of the U.S. consumer was also on display, as total retail sales increased a stronger-than-expected 1.3% in October, boosted, in part, by a 1.3% jump in motor vehicles & parts and a 4.1% rise at gasoline stations.
Wells Fargo Economics & Financial Report / Jul 31, 2022
Unlike the local temperatures, data released this week showed U.S. economic growth modestly declined in Q2.
Wells Fargo Economics & Financial Report / Mar 14, 2023
Financial markets were looking for validation that January\'s unexpected strength was not a fluke and that the downward slide in economic momentum experienced late last year had stabilized.
Wells Fargo Economics & Financial Report / Apr 17, 2021
Data released this week continue to show that the economic recovery has gained momentum in March. The much anticipated consumer boom has arrived.
Wells Fargo Economics & Financial Report / May 04, 2020
U.S. GDP declined at an annualized rate of 4.8% in the first quarter, only a hint of what is to come in the second quarter.
Wells Fargo Economics & Financial Report / Aug 15, 2020
The consumer has been a bright spot in the recovery so far, but with jobless benefits in flux and no clear path for the long-awaited stimulus bill, the support here could fade.
Wells Fargo Economics & Financial Report / Jun 08, 2021
This week\'s light calendar of economic reports showed supply chain disruptions tugging a little at economic growth.
Wells Fargo Economics & Financial Report / Aug 30, 2021
In other economic news, output continues to ramp up across the U.S., even as the resurgence in COVID cases is leading to some pullback in consumer engagement.
Wells Fargo Economics & Financial Report / Apr 29, 2020
The sudden stop in economic activity caused by the COVID-19 pandemic means that many businesses will need to rely on their cash reserves to survive the next few months.
Wells Fargo Economics & Financial Report / Jul 13, 2020
The ISM non-manufacturing index jumped 11.7 points to 57.1, reflecting the broadening re-opening of the economy.