Home sales recovered for the third month in a row in December but plunged in 2022 after high mortgage rates and record home prices lowered affordability for many first-time home buyers.
The U.S. economic expansion slowed in the final quarter but resilient consumer spending and business investments delivered stronger than expected growth.
Durable goods orders soared in December after volatile transportation and defense orders rose. Manufactured durable goods shipment increased in December, up nineteen of the last twenty months.
Despite the drumbeat of layoffs from large tech companies, overall jobs market conditions remain tight. Jobless claims dropped to the lowest level in nine months.
Housing starts and completions are negatively impacted by the rising mortgage rates and record home prices. Residential construction permits and starts declined but completions rose from a year ago in December.
Retail sales unadjusted for price inflation declined in December from November but rose from a year ago. The three-month sales to December reflected tight household budgets.
Headline consumer inflation declined for the sixth month in a row after energy prices declined in five of the last six months. Elevated housing prices continued to fuel overall inflation.
International goods deficit in November declined to $84 billion and the services surplus rose to $22.5 billion from the previous month. The monthly trade deficit in goods and services was the smallest since September 2022.
