RealPage Economy Express Episode 27

by   Arben Skivjani
  Posted   May 17, 2024
  in   Economy Express ,   Insights

Episode 27: Expect Elevated Rates for Longer

  • The U.S. economy added 175,000 nonfarm payroll jobs in April, a slowdown from the 242,000 average monthly gain over the past year, according to the Bureau of Labor Statistics.
  • For the week ending May 4th, initial jobless claims rose to 231,000, an increase of 22,000 from the previous week's revised level, per the BLS.
  • The Producer Price Index (PPI) for final demand increased by 0.5% in April after declining by 0.1% in March.
  • The Consumer Price Index (CPI) rose by 0.3% in April, decelerating from March's 0.4% gain. In turn, the annual inflation rate ticked down to 3.4% in April, per the BLS.
  • Influenced both by CPI and Fed Chair Jerome Powell’s recent remarks, we still believe a rate cut later in the year is possible.
  • Consumer sentiment tumbled to 67.4% from 77.2% in April, according to the University of Michigan.
  • While the latest reports showed moderating job growth and easing wage pressures, stubbornly high producer and consumer prices have forced the Fed to reiterate its commitment to keeping rates elevated until inflation is under control.

For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

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