International goods deficit shrank in May after imports fell faster than exports. Automotive vehicles exports jumped but industrial supplies imports dropped.
Mortgage loan application volume increased in the previous week despite a slight increase in mortgage rates but plunged from a year ago on the lack of availability and elevated home prices.
Durable goods orders rose in May and advanced for the third month in a row, led by transportation equipment orders. Capital goods orders, proxy for business spending, modestly increased.
Housing starts unexpectedly jumped in May from the previous month and completions and permits also increased at faster-than-anticipated rates, indicating a resilient housing market.
Retail sales unadjusted for price advanced in May at a slower pace than in April. Gasoline station sales continued to remain depressed, reflecting lower gasoline prices.
The Federal Reserve decided to leave the federal funds target rate range unrevised between 5.0% and 5.25%. The consumer price inflation has significantly declined in the last nine months but rates are still not restrictive enough to bring down inflation to 2%.
Consumer price inflation declined in May reflecting lower energy prices and weaker food price inflation but rising housing costs continue to fuel overall inflation.
Employers in several sectors and industries continued to expand payrolls at elevated levels despite the rising interest rates and looming economic slowdown.
