Economic Update April 2023

As a business owner, it’s important to stay informed about the current state of the economy and how it may impact your business. Economic trends can affect everything from supply chains and customer demand, to labor markets and financing.

With so many moving parts, it can be challenging to keep up with the latest economic developments and their potential implications. Whether you’re a small business owner, or a leader of a larger organization, this update will help you stay informed and help you make wise decisions to support your business growth and success. Here are a few key indicators to help you keep track of current economic trends:

• Job growth remains robust. The U.S. added 517,000 jobs in January, more than double what economists forecast.
• Unemployment remains low. The rate fell to 3.4 percent in January, the lowest since May 1969.
• Consumers continue to spend. U.S. retail and food service sales for January topped $697.0 billion, up 3.0 percent from the previous month.
• The labor market is tight. U.S. employers had 11.0 million open positions in December, well above the 6.5 million average in the years prior to the pandemic.
• Factory activity has picked up. New orders for manufactured goods rose $10.0 billion or 1.8 percent to $552.5 billion in December. Orders have risen four of the last five months.
• And the housing market is recovering. Sales of new single-family homes hit a seasonally adjusted annual rate of 616,000 in December, 2.3 percent above the November estimate of 602,000.

While these stats indicate many sectors remain robust and growing, there are some trends that show slowing activity in key sectors that have traditionally powered the economic engines in our region.

• New home construction remains weak. In January, housing starts fell 4.5 percent compared to December.
• Overall construction is down. Total activity for December slipped 0.4 percent below November levels.
• Inflation remains stubbornly high. The Consumer Price Index for All Urban Consumers (CPI-U) rose 6.4 percent in the 12 months ending January ’22.
• Businesses are struggling with increased costs. The Producer Price Index (PPI) rose 6.0 percent in the 12 months ending January ’23.
• And many business leaders have embraced a gloomy outlook.

Staying up-to-date on the economic landscape can help business leaders make informed decisions on what strategy. So, make sure to stay informed, seek expert advice when necessary, and stay nimble in your decision-making to navigate the dynamic economic landscape successfully.