Counting Our Economic Blessings (Editorial)

The Federal Reserve Bank in Washington, D.C. (Shutterstock)

We’re more than halfway into 2024, and the U.S. economy is humming along. Could it be better? Always, but most metrics and interviews with Arkansas CEOs indicate a strong economy. Consider:

• The Consumer Price Index fell in May, resulting in a year-over-year inflation rate of 3%. While that remains higher than the Federal Reserve’s goal of 2%, “We’ve definitely seen a pretty sharp slowing,” Kevin Cummins, chief U.S. economist at NatWest Markets, told The Wall Street Journal. “This is certainly a confidence booster for the Fed.”

• As we reported in our June 24 issue, Arkansas business leaders feel good about the economy, with capital investment, hiring and revenue all showing gains. The rising cost of labor, lack of workers in some sectors and high interest rates remain a challenge.

• That rising cost of labor, however, stems from wage growth. Between June 2023 and June 2024, the average hourly wage of employees rose 3.9%, the U.S. Bureau of Labor Statistics said, faster than the rate of inflation. That’s good news for workers but also good news for those who sell goods and services to workers.

• Unemployment remains low, 4.1% nationwide and 3.4% in Arkansas.