In today's episode, I discuss some key points in the latest NFID Small Business Economic Trends - September 2020 Report. Some of the key points are:
1) Housing is probably the hottest sector, posting record home sales last month, and double-digit price increases. More construction firms have unfilled job openings than in any other industry. Durable goods were strong except for aircraft, autos were weak after several strong months. Non-Defense capital goods orders (excluding aircraft) were also very strong
2) The ratio of inventories to sales in retailing is at a record low level, spurring more production and imports to fill the gap.
3) The Fed has succeeded in creating inflation in the asset market, stocks and bonds are at record levels, but alas, no goods and services inflation. Home prices rose at double-digit rates because the demand for homes exceeded supply, the traditional cause of "inflation" (not indirectly included in the inflation measures). But no significant increase in the overall price level. - no inflation
