Economy.com Daily Update: June 24, 2022

Today's Economy

New-home sales had fallen every month this year until they rose in May.

The Bank of Canada needs to be careful about its response to the latest CPI report.

It's the first step in multiyear process to becoming a full member.

Issuance is coming in weaker than expected for the first half of the year.

Commentary

Retail sales get a solid lift in Mexico and Argentina.

May’s headline and core prices were much higher than expected, causing inflation not seen since 1999.

High food prices pose food security risks for some countries in the Middle East and North Africa, while hydrocarbon exporters see windfall gains.

The shift will push up debt burdens.

Today's Economic Indicators

Netherlands
GDP
2022Q1: 0.4% q/q
Revised upwards from a flash estimate of no growth, the statistics office has revealed that quarter-on-quarter real GDP grew 0.4% in the first three months of the year.

Singapore
Industrial Production
May. 2022: 13.8% y/y
Singapore’s industrial production was up by 13.8% y/y in May, a robust improvement from April’s 6.3% increase.

Spain
GDP
2022Q1: 0.2% q/q
Spain's GDP decelerated in the first quarter of 2022 and grew 0.2% q/q in seasonally adjusted terms.

United Kingdom
Retail Sales
May. 2022: -0.5% m/m
U.K. retail sales declined by 0.5% m/m in May, and adding to the bad news was that April’s increase was revised sharply down from 1.4% to 0.4%. The sad truth is that such grim results are no longer surprising—soaring inflationary pressures were always expected to take a toll on spending during the spring.

Mexico
Economic Activity Index
Apr. 2022: 1.3% y/y
Economic activity in Mexico posted another annual advance in April supported by agriculture and industry.

Canada
Earnings, Hours and Employment
Apr. 2022: 4.0% y/y
Canadian job growth edged forward by 0.7% in April, like the previous month.

United States
Moody’s Analytics & CNN Business Back-to-Normal Index
June 22: 94.3
The Moody’s Analytics & CNN Business Back-to-Normal Index clocked in a healthy gain this week, rising from a revised 93 to 94.3.

United States
University of Michigan Consumer Sentiment Survey
Jun. 2022: 50.0
The University of Michigan consumer sentiment index fell sharply in June, dropping below the prior record low set in the depths of the 1980 recession.

United States
New-Home Sales
May. 2022: 696,000 SAAR
Demand for new homes is softening.

United States
Financial Obligations Ratio
2022Q1: 14.22%
Household financial burdens rose for the fourth consecutive quarter in the first quarter as growth in debt payments and obligations strengthened while fading stimulus weighed on incomes.

United States
Oil Inventories
June 17: