A wave of new economic data is pointing to broad-based strength across the American economy, with improvements in housing, manufacturing, consumer confidence, and the labor market.
Housing
New residential construction surged last month to its highest level in more than a year, reflecting strong momentum in expanding housing supply. Home prices declined on an annual basis in more than half the country, reversing years of rapid increases and improving affordability for families and first-time buyers. Rent growth slowed to its lowest pace in several years, with single-family rent growth hitting a record low. Income growth is now outpacing rent growth nationwide, returning the typical share of income spent on rent close to pre-pandemic levels.
Manufacturing
Orders for business equipment posted their largest surge in more than six years, while shipments of machinery and equipment also exceeded expectations — strong signals of expanding industrial capacity. The Richmond Fed manufacturing survey jumped to its highest reading in years, joining similarly strong performances from the Philadelphia and New York Feds, pointing to a broad-based pickup in factory activity across the nation.
Consumer Confidence and Labor Market
Consumer confidence rose sharply in March, exceeding economists’ expectations as Americans grew more optimistic about business and labor market conditions. Personal income doubled expectations in March, rising at its fastest rate in nearly a year, while personal spending remained robust. U.S. economic growth accelerated in the first quarter, powered by the strongest expansion in business investment since 2023 and steady consumer demand. Initial jobless claims plunged last week to their lowest level since 1969, highlighting the strength of the labor market.
President Trump credited his pro-growth agenda for the results, pointing to policies aimed at prioritizing American jobs, manufacturing, and economic prosperity.
By DNU staff