Self-Employed and Micro-Business Owners Continue to Navigate a Mixed Bag of Economic News
The first weeks of April included a steady stream of economic data that continued to be a mixed bag. While there were continued bright spots, including continued declines in unemployment, inflation increased slightly after falling for several months.
Here is a breakdown of some of the key economic data toplines:
Unemployment: The latest figures show a stable unemployment rate with modest job growth, indicating a resilient labor market. Currently the unemployment rate is 3.7%, which continues the longest streak of below 4% unemployment since 1984, following the Covid spike of almost 15% unemployment in the height of the pandemic. Consumer Price Index (CPI): The CPI is one of the measures of inflation. In April, the CPI saw a slight increase in the cost of consumer goods (ex. groceries, utilities, housing), which netted a small uptick in inflation. Retail Spending: A good indicator of how consumers are “feeling” about the economy since consumer spending is a significant portion of economic activity. In March, consumers retail ticked up slightly. Housing Market: The housing data continues to lag. Permit and mortgage applications were down, most likely the continued pressure of higher than average mortgage rates which is slowing the entire housing market. Business Confidence and Consumer Sentiment: This is an important index that provides economist with an outlook from both businesses and consumers. In March, business confidence remained steady, while consumer sentiment saw a slight decline. Federal Reserve Interest Rate Announcements: Finally, businesses and consumers are watching closely how might the Federal Reserve respond to the latest economic data, specifically, any indication of recommending interest rates cuts, which, if well timed, could help lagging home sales.
The data shows that the economy continues to maintain some stability following the economic stressors caused by the Covid pandemic and global dynamics, including the Russia/Ukraine conflict, which is impacting global supply chains.
Remember, economic data is complex and dynamic (changes every day), and while these toplines provide a snapshot, they are part of a larger, dynamic economic landscape.
Meet The Author:
As Vice President for Government Relations and Public Affairs, I work to explain how actions on Capitol Hill can impact the self-employed. I love D.C. and have made my home in Capitol Hill, where I live with my husband and black Labrador, Coltrane. We love playing volleyball and softball on the National Mall.
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