How's Everyone Doing?

MESSAGE FROM THE PRESIDENT

July 17, 2023

I am frequently asked by policymakers, the media, and other State Chamber members: “How’s everyone doing?”

For most businesses, sales are robust, supply chain issues have largely sorted out, yet input price inflation and labor shortages remain a worry for some. Last week’s economic data was welcome news, but many expect the Fed to raise interest rates 25 basis points when they meet next week. That’s not good news for homebuyers, real estate professionals, or other industries that are capital intensive and frequent borrowers.

Other key industry sectors are feeling pinched too. Resort communities around the country are experiencing drops in sales by as much as 30%, and that’s a big problem if your “high season” runs four-to-six months. In another case, heavily regulated businesses like hospitals, where substantial percentages of patients are on Medicare or Medicaid, are hurting financially since reimbursement rates have not changed to keep pace with inflation, wage increases, and higher input expenses.

Overall, the economy is doing well, but the experience is far from even for everyone.

News You Can Use

We kick off the economic news of the week with the Empire State Manufacturing Index and results from July. On Tuesday, we’ll see retail sales results for June, industrial production for June, business inventory data from May, and the homebuilder confidence index for July. Wednesday brings us housing starts data from June, while Thursday we’ll see the Philadelphia Fed Manufacturing Survey data from June, as well as June housing starts and U.S. leading economic indicators.

This is a busy week for earnings calls as more companies report Q2 results. We start off today with Equity Lifestyle Properties. On Tuesday, State Chamber members Bank of America and PNC are joined by Hasbro, J.B. Hunt Transport Services, Lockheed Martin, Morgan Stanley, and Novartis. Wednesday is headlined by Citizens Financial Group, M&T Bank, Discover Financial Services, and joined by United Air Lines, Netflix, and Tesla. American Airlines, CSX, Freeport MacMoRan, Truist Financial, Johnson & Johnson, and Marsh McLennan are on Thursday’s schedule. We wrap up Friday with American Express, AutoNation, and Regions Financial.

Michael J. Quaranta

President

Delaware State Chamber of Commerce

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