Breitbart Business Digest: Homebuilder Sentiment, Apple Report Send Shudders Through Economy

Are you sitting down? Today’s Breitbart Business Digest begins with more gloomy economic news.

The key piece of data we were waiting on today is the National Association of Home Builders index (NAHB), which reflects how home builders are feeling. And the feeling is not great, apparently. Builder sentiment is now at 55, a drop of 12 points. This is the largest single-month drop ever, with one exception. (The exception being April 2020. As you may recall, the world had decide to shut down at exactly that time.)

The silver lining here is that a number above 50 is still considered positive. With surging interest rates, steadily rising costs due to the Bidenflation, and other supply chain related bottlenecks, it’s a minor miracle that anyone wants to build at all.

While the wealthy are somewhat insulated from the bad news, normal Americans are getting hit hard. NAHB’s chief economist Robert Dietz noted that “significant segments of the home buying population are priced out of the market.” This has been a standard pattern in our current economic climate. According to a recent Primerica study, 77 percent of middle-income families are preparing for a recession with nearly three-quarters cutting back on spending. Meanwhile, credit card debt continues to climb.

Sales are also down sharply in local housing markets, and inventory has surged. California is a standout here; sales are down 20.9 percent year-over-year in the Golden State.

Also in economic news, U.S. stocks dropped late in the day after being up early. The drop was largely attributed to a report from Apple that it intends to slow hiring and spending. Goldman Sachs also announced today that they intend to cut costs, including via job cuts.

And finally, if you’re wondering how President Biden’s Saudi Arabia trip affected oil prices, they rose on Monday. This ended a modest slump in oil prices likely attributable to diminished demand due to China’s coronavirus lockdowns. We’ll see if this trend continues.

These are all clear reminders that the economy is a few steps away from roaring back better.