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New York CNN —New Hampshire, the “first-in-the-nation” primary state (which will hold those elections Tuesday), has been a relatively “better-off” state than most others nationally. Median income/povertyThe typical New Hampshire household has a higher income compared to the average in the United States, and a smaller share of state’s residents are in poverty. Southeastern New Hampshire — where three-quarters of the state’s residents live — benefits from being close to the Boston metropolitan area, said Phil Sletten, research director at the left-leaning New Hampshire Fiscal Policy Institute. Some 42% of New Hampshire residents approved of Biden on the economy, with 55% disapproving, according to a November CNN/University of New Hampshire poll. But when it comes to their personal finances, New Hampshire residents are downbeat.
Persons: ’ ”, Charlie Dougherty, , ” Dougherty, “ You’ve, Patricia M, Anderson, Patrick Connelly, ” Connelly, that’s, Brian Gottlob, , Spencer Platt, Lori Harnois, Gottlob, Phil Sletten, Sletten, Joe Biden, Biden, Gina Ferazzi Organizations: New, New York CNN —, United States, of Labor Statistics, Wells, Labor, Reserve, Dartmouth University, CNN, Housing, Tax Foundation, Tourism, Census, Granite State, Survey, New Hampshire —, University of New, Commerce Department, University of New Hampshire Survey Center, Patrons, Los Angeles Times, Independents Locations: New York, New York CNN — New Hampshire, Granite, New Hampshire, Boston, , New Hampshire, “ New Hampshire, , Hampshire, Chester , New Hampshire, Manchester, Devon, Bartlett , New Hampshire, Ohio, Washington, New, Canada, Pennsylvania, United States, Granite State, University of New Hampshire, Colebrook , New Hampshire
The US housing market looks like it's headed for a recession, Wells Fargo has warned. AdvertisementAdvertisementThe Federal Reserve's aggressive interest-rate hikes could be about to trigger a housing-market recession that echoes the slowdown of the 1980s, Wells Fargo has warned. "Although mortgage rates may gradually descend once the Federal Reserve begins to ease monetary policy, financing costs are likely to remain elevated relative to recent norms," they added. Please Lower Interest Rates." AdvertisementAdvertisement"The plea for assistance from housing industry participants, both in the early 1980s and more recently, illustrates the severe impact higher interest rates can have on the residential sector," Dougherty and Barley wrote.
Persons: Wells Fargo, , Charlie Dougherty, Patrick Barley, Freddie Mac, Jackson, Paul Volcker, National Association of Homebuilders, Jerome Powell, Dougherty, Barley Organizations: Service, Federal, Fed, Wells, National Association of Realtors, Mortgage Bankers Association, National Association of Locations: Redfin
WASHINGTON, May 9 (Reuters) - U.S. small business confidence fell to more than a 10-year low in April on worries about the near-term economic outlook and persistent worker shortages, but there were few signs that businesses were having difficulties accessing credit. The National Federation of Independent Business (NFIB) said on Tuesday its Small Business Optimism Index dropped 1.1 points to 89.0 last month, the lowest level since January 2013. "As we've argued before, though, measures of sentiment are often a poor guide of what is likely to happen in the economy because it tells us more about how business owners are feeling, rather than what they are doing." The share of owners expecting better business conditions over the next six months fell two points to a net negative 49%. Forty-five percent of owners reported job openings that they could not fill, up 2 points from March.
In some cities, the damage will be as bad as it was across the US in the mid-2000s, the bank said. Attention homeowners and real-estate investors, Goldman Sachs has bad news: home prices are going to fall further in 2023 than they had previously thought. Goldman SachsWhile Karoui, Viswanathan, and Walker see national home prices falling by 10% peak-to-trough, they see prices in cities where home values have soared above average falling more. What other firms are sayingGoldman Sachs isn't the only Wall Street bank calling for further home price declines in 2023. Morgan Stanley strategist James Egan said in a January note that he sees home prices falling by 4% in 2023 thanks to stagnant demand.
But a housing market slowdown also increases the risk of a recession. The aggressive monetary tightening lifted the average 30-year US mortgage rate from 5.60% to 6.84% over the last three months, according to Bankrate. "A decline in home buying is one of the byproducts of tighter monetary policy," Macquarie's head of economics David Doyle told Insider. What has the Fed said about the housing market? Should borrowing costs remain too high for too long, those industries risk facing a decline in business at a time when monetary tightening is already squeezing their cash flows.
Extreme weather could push food inflation even higher
  + stars: | 2022-09-14 | by ( Alicia Wallace | ) edition.cnn.com   time to read: +10 min
But as extreme weather events increase in frequency or become even more intense, the unpredictability is becoming more of an economic liability. “And those higher costs are being passed on to consumers.” The rise in food prices is one of the key factors fueling inflation, according to recent CPI data. Extreme weather also can negatively affect companies’ bottom lines, according to research from Paul Griffin, professor of management at UC Davis. Corn crops that died due to extreme heat and drought during a heatwave in Austin, Texas, on Monday, July 11, 2022. Still, the very prospect of more extreme weather could further sap away groundwater and limit the cultivation potential in the future, Smith said.
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