Weekly economic review & outlook Signs of Delta on both demand and supply
You Need to Know
Week in review
Fewer jobs added in August
The Delta variant weighed on hiring for August, but the overall trend remains solid with plenty of demand remaining for labor.
ISM surveys diverge: manufacturing up and services down
Advancing new orders and production helped to lift the manufacturing survey for August.
Job openings likely to rise a bit to a new record high
We expect job openings to edge a tad higher – setting a record for a fifth straight month – as strong demand for workers continues to collide with low supply.
More rapid input price growth expected
While the most intense upward price pressures should be in the rearview mirror, producers likely still faced rapid price growth in August.
The Delta variant of Covid has been having a growing impact on the economy over the past few months. Last week’s economic data showed this with consumer confidence/sentiment, the ISM services survey, and the employment report. Supply constraints remain a severe bottleneck for the economy and given how much these problems have weighed on the housing market, they are likely to elongate the process of rebuilding for those impacted by Hurricane Ida.