In this week’s economic review, job openings climbed, credit spending slowed, and mortgage rates held steady.
U.S. job openings shot up to a new record in April (6.7 million) with openings surpassing the number of unemployed. For comparison, there are currently 0.9 unemployed persons per job opening versus 1.9 people in 2007. The rise in openings was led by the professional and business service sector, but manufacturing, trade and transportation, and leisure and hospitality were leaders as well. Hirings did increase from 5.5 million to 5.6 million.
Despite the record-breaking amount of job openings, the quit rate, which indicates the willingness of an employee to leave their job and feel confident in finding new employment, was little changed at 2.3 percent.
While U.S. consumer debt did rise in April, it was the smallest gain in the last seven months. The slowdown is attributed to lessened demand of auto loans (non-revolving credit) after strong gains in sales over the last year.
Revolving credit, on the other hand, picked up in the month with a $2.3 billion month over month increase after a $1.1 billion decline in March.
This week in the economy:
- As of June 7th, the 30-year average fixed rate was 4.54% with 0.5 points, according to Freddie Mac.
- In the week of June 1st, the purchase sector of mortgage applications fell a seasonally adjusted 4 percent. The refinance index increased 4% from the previous week.
- In the week of June 2nd, initial jobless claims fell 1,000 to a seasonally adjusted level of 222,000.
The economic calendar for the week of June 11th, 2018:
- Tuesday – FOMC Meeting Begins
- Wednesday – MBA Mortgage Applications, FOMC Meeting Announcement
- Thursday – Jobless Claims, Retail Sales
- Friday – Consumer Sentiment
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