Economic news is always a priority, but sometimes its importance is greater given uncertain times or external factors—and both are visibly present right now. Consumer prices have risen 7.9 percent over the past twelve months, and that’s a forty-year high. While food and energy costs have gone up, they only account for a part of what the economy is experiencing. Therefore, consumers are paying more for many other things, beyond food and energy. The Federal Reserve Bank and its Federal Open Market Committee (FOMC) has ended asset purchases and will likely reduce its balance sheet this summer. Look for interest rates to tick up by 25 basis points more than once in the coming months.

As we head into our Spring Manufacturing & Policy Conference on Wednesday, we remain concerned that over 855,000 manufacturing job openings were reported in January. According to the National Association of Manufacturers, “The number of job postings continues to be well above pre-pandemic levels. Over the past ten months, job openings in the sector have averaged 873,000, including a record of 943,000 in July.” In addition, the “total quits in the manufacturing sector rose from 322,000 in December to 331,000 in January, a new record. That translated into 2.6 percent of the manufacturing workforce and continues a trend of very significant ‘churn’ in the labor market, exacerbating the workforce difficulties that companies are experiencing.”

Delaware’s seasonally adjusted unemployment rate for January 2022 remained unchanged from the revised December 2021 rate of 4.8%. Delaware maintains its lowest rate of unemployment since February 2020, when the rate was 3.7%. The State begins the year with a net 8,700 or 2.0% more jobs than in January 2021. In January 2022, Leisure & Hospitality were up 3,500 jobs over-the-year, while Wholesale & Retail Trade as well as Professional and Business Services increased by 2,500 and 1,300 jobs over-the-year, respectively. Education & Health Services are down 2,600 jobs over-the-year.

We kick off the week later today with one- and three-year inflation expectation figures. On Wednesday, we’ll get insight into February retail sales and import prices. The Fed Chairman, Jerome Powell, hosts a news conference that afternoon, and he’s likely to address the actions of the FOMC on interest rates. Thursday brings us an early look at March jobless claims, and February building permits and housing starts. We wrap up the week on Friday with existing home sales data from February and results from the index of leading economic indicators from February. 

Vail Resorts and Westport Fuel Systems have earnings calls today. Dole, Volkswagen, and Volt Information Sciences host calls on Tuesday. Home builder Lennar hosts a call on Wednesday as does Eton Pharmaceuticals, Lands’ End, and Williams-Sonoma. FedEx headlines the Thursday calls with Accenture, Dollar General, Warby Parker, and Up-Fintech Holdings rounding out the week of calls.  

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