International Business & Trade

as Rising Mortgage Rates Weigh on Housing Activity

• Sales of existing homes fell 2.4% to 5.61 million annualized units in April from the prior month, the lowest level since June 2020.
• The inventory of unsold existing homes in April improved slightly to 1.03 million from 950,000 in March.
• Sales of existing homes were down on a year-over-year basis in each of the four major U.S. regions.
• Affordability will erode further as mortgage rates rise, resulting in slower housing activity through 2020

as Automakers Boost Output

• Industrial production increased 1.1% in April, the fourth straight increase. Output was up in manufacturing, mining, and utilities.
• There was a second straight big increase in auto output as the automakers gradually resolve their supply chain problems.
• Goods inflation will slow through the rest of 2022.

Michigan had fastest small business job growth in 23 years, added 170,000 jobs in first three quarters

LANSING, Mich. - Monday, Governor Gretchen Whitmer highlighted new data showing Michigan’s economic jumpstart continues as small businesses in the state are experiencing tremendous growth and expansion. In the first three quarters of 2021 alone, small businesses with fewer than 50 employees created almost 170,000 jobs, the fastest start to small business job growth in 23 years, according to the Michigan Bureau of Labor Market Information.

Big Upward Revision to March

• Retail sales increased 0.9% in April, with a big upward revision to sales in March.
• Sales growth was strong across segments, although gasoline sales fell due to lower prices.
• Although consumers are concerned about inflation, they continue to spend and sales growth should remain solid throughout 2022.
• Consumer spending growth will shift to services from goods.

in April 2022

• Final Demand Producer Price Index (PPI) rose 11.0 percent year-over-year in April 2022, a 0.8 percent monthly gain
• Core Final Demand Producer Prices, less Food & Energy, saw growth decelerate into April 2022, but still up 8.8 percent for the year
• Energy PPI saw a significant monthly slowdown, up 1.7 percent from March into April 2022
• Transportation & Warehousing Services price gains accelerated further in April 2022, demonstrating the continued costs of supply chain issues