Margins are falling across more sectors. Are companies getting less greedy?
Or are they more attuned to less intense demand for their goods/services, better supply, and the potential to lose market share?
From @greg_ip on 'greedflation't.co/w5UjBVQhR3 pic.twitter.com/7E4rJhW6yH
— Nick Timiraos (@NickTimiraos) July 6, 2023
But despite all that, things are looking bright!
Banks are removing their recession forecasts, layoffs have mostly stopped, and companies are hiring.
Everything might just be okay for now!
— Genevieve Roch-Decter, CFA (@GRDecter) July 6, 2023
The unemployment rate tends to peak when the yield curve spread is between 2.4-4%
Currently, the yield curve is inverted, signaling a lot of room for unemployment to move higher pic.twitter.com/DW0J8JYWII
— Game of Trades (@GameofTrades_) July 6, 2023
Job Openings Plunge by 500K While Surprising Surge in Quits Takes Place
The latest JOLTS report reveals contrasting trends in the labor market. Job openings declined by 496,000 in May, with notable decreases in sectors like health care and finance. However, the number of voluntary quits surged by over 250,000, particularly in health care and construction. Additionally, hires increased by 107,000. The reliability of the data is questioned due to the record-low response rate of 31%. Careful analysis is needed to navigate the complexities of the evolving labor market.
Is the Consumer Is Cracking?
Cash-strapped Americans are resorting to searching for “pawn shop near me” as a desperate measure to raise quick money amidst the current inflation crisis. The search trend has reached record highs, indicating that consumers may be selling off items purchased during the Covid boom. The nationwide interest in this trend is reflected in related searches for pawn shop services. The situation raises concerns about the effectiveness of current economic policies, as consumers face negative wage growth, depleted savings, and high levels of credit card debt. Companies and analysts have noted signs of a weakening consumer, further fueling worries about the state of the economy.