Fed-favored gauge shows inflation eased again in Nov. | Tips to drive your 2024 growth strategy and keep it on track | Durable goods orders up 5.4% in November
The personal consumption expenditures price index fell 0.1% in November from the previous month, according to the Commerce Department, marking the first monthly price decline since April 2020. The annualized inflation rate dropped to 2.6%, down from 2.9% a month earlier, while the core PCE index increased 0.1% from the prior month and 3.2% from a year earlier, the lowest annual inflation rate since March 2021.
Distributors planning a smart strategy for 2024 need to account for any number of unexpected developments and make adjustments on the fly, writes John Gunderson, a senior leader with Dorn Group. Successful execution of such a strategy in the new year includes ensuring proper guardrails are in place to keep plans from falling off a cliff, moving quickly and identifying winners, and to diversify channels, products, segments and markets to maximize potential, Gunderson writes.
US orders for durable goods jumped 5.4% in November, rebounding from a 5.1% decline a month earlier to post the most significant gain since July 2020. Driven by a 15.3% increase in transportation equipment, including an 80.1% bump in civilian aircraft orders, demand for US manufactured goods broadly increased, with electrical equipment, appliances and components, primary metals, machinery, and computers and electronic products each on the rise last month.
Initial jobless claims increased by 2,000 to 205,000 last week, according to the Labor Department. The four-week average of initial claims fell by 1,500 to 212,000, the lowest reading since October, while continuing claims the week of Dec. 9 were effectively flat at 1.87 million.
Interest in multistory warehouses has been gaining momentum since they were first introduced in the US in 2018 by Prologis, Inc. near the port of Seattle. Prologis spokesperson Mattie Sorrentino noted that the REIT also has a multistory facility in Miami and another under development in San Francisco. Meanwhile, JLL notes that New York City has 9.4 million square feet of last-mile logistics properties either planned or under construction. The city already has five multistory facilities and five more under construction.
Entrepreneurs Euro Wang and Jack Solomon have launched Guac, an AI platform that predicts grocery demand based on external variables such as weather, sporting events, holidays and even consumers' Spotify listening data. Guac, which recently raised $2.3 million in seed funding, forecasts demand on a per-item basis each day for retailers and provides recommendations, including shelf life, order quantities, promotions, and supplier lead times.
Shippers have rerouted at least $80 billion in goods to avoid Houthi militant attacks in the Red Sea, and more than 100 container ships are currently taking the lengthy route around Africa even as a US-led multinational task force is working to shore up security. Longer routes are causing delivery delays of up to two weeks and more than tripling costs in some cases, while fast-acting shippers are exploring cargo flights and intermodal transport that could also prove more costly.
Jason Ball, founder of Considered Content, explains what business-to-business marketers need to know when choosing a new B2B agency, from the pitching process to what to look for in terms of an agency's people and its strategy. "Answers are merely pitchcraft. They can be learned," Balls says, adding, "Insightful questions say far more about their ability to understand your business and think around your challenges."
Marketing content can be created more easily with the help of online tools including "Keyword Insights," "MarketingBlocks," and "Swiftbrief," writes Ann Smarty, founder of Smarty Marketing. Smarty provides detailed instructions on how to use the tools and what they can do for developing content.
Investor optimism related to central bank rate cuts next year is closing the spread between Treasuries and US corporate bonds. Demand for bonds is reducing corporate borrowing costs, with global junk bond yields at their lowest level since February and high-grade corporate bond yields at their lowest level since April. However, lower corporate borrowing costs could provide the Federal Reserve with less incentive to cut rates.
Global banks' outlooks for 2024 largely predict the US will now avoid the recession that was expected to hit this year, but companies are still bracing for a looming economic downturn. The schism between banks and companies has left investors split on what to expect. "Take a grain of salt maybe to measuring the efficacy of some of these sell-side forecasts," says PGIM Quantitative Solutions portfolio manager Patrick McDonough. "I would be a little bit more on the side of the companies."
Experience three days of excellent networking opportunities, cutting-edge content, and educational programming for leaders in the wholesale-distribution industry at NAW's Executive Summit Jan. 30 - Feb. 1. Hear from world-class speakers and explore issues critical to the industry. Be prepared for what's next and learn new strategies to get there first. View agenda and registration information here.
