The January 2025 Economic Advisor, published by ITR Economics for NFFS members, is now available. Please note that you must log in to your NFFS account to see this members-only publication.
FEATURED ARTICLE
A Closer Look: The U.S. Economy: The U.S. Economy – What's to Come for Borrowing Costs
by Caroline Dunsby, ITR Economics
The Federal Reserve has lowered its benchmark rate, the federal funds rate, three consecutive times in late 2024. It is now down a full percentage point from the peak. Consumers and businesses alike had been hopeful that this would result in lower borrowing costs and mortgage rates, which tend to follow the direction of the federal funds rate. However, this has not come to fruition.
ALSO IN THIS ISSUE
- ITR's Macroeconomic Outlook
"This year will be characterized by subdued growth for many industries. The Federal Reserve is easing monetary policy, but long-term interest rates are elevated, dampening the potential for significant growth levels in interest-rate-sensitive industries." - Make Your Move, a monthly tip for managers
"Although inflation is retreating, the combination of rising real personal incomes, a relatively tight labor market, and the expectation of continued elevation in government spending point toward reignited inflation on the horizon." - Investor Update
"Although inflation is retreating, the combination of rising real personal incomes, a relatively tight labor market, and the expectation of continued elevation in government spending point toward reignited inflation on the horizon." - ITR Economics' Long Term View
"2025 – Growth; 2026 – Growth..." - Leading Indicator Snapshot
"While signs are pointing toward rise in US Industrial Production in the coming quarters, rise will be modest due in part to still-elevated interest rates..." - Manufacturing Industry Analysis
"US Total Manufacturing Production in 2024 was 0.4% below the 2023 level." - State-by-State Analysis: Housing Permits
"US Housing Permits in the 12 months through November declined to 1.458 million but came in 0.4% above the year-ago level..." - Reader's Forum
"I hear from some news outlets that the labor market is softening, but others say it is tight. Why the diverging headlines and what is the truth?"
The NFFS Economic Advisor provides economic data that is sourced and compiled on a monthly basis by ITR Economics for members of NFFS. It provides leading indicator trend data and relevant economic news to assist foundries with their internal economic analyses and business planning.
NFFS Members: Don't forget to visit the NFFS Economic Portal, an all-in-one platform that provides a wealth of economic insights and invaluable resources to help members navigate the ever-changing business landscape.