Trio of monthly reports shows increased economic wariness

September mid-month economic releases from the National Association of Homebuilders, the University of Michigan and the National Federation of Independent Business indicate cooling confidence across key facets of the economy..The NAHB/Wells Fargo Housing Market Index dropped three points from August to a one-year low. Homebuilders report being squeezed by high material costs and elevated mortgage rates, causing a pullback in construction sentiment.Preliminary September sentiment in the University of Michigan’s survey of consumers fell to 47.8, the second consecutive monthly drop. “Year-ahead expectations for both personal finances and business conditions plunged,” said Surveys Director Joanne Hsu. Higher fuel prices and trade-related anxieties dampened perceptions, and short-term inflation expectations spiked 60 basis points since the August release, to 4.6%. A final reading for the month is scheduled for Sept. 25.Small businesses are also trimming their expectations according to last week’s economic trends release from the NFIB. Optimism fell 1.1 points to 98.7. While that is near the historical average, small business owners reported slower sales and scaled-back hiring plans – and measures of uncertainty remained stubbornly elevated at 89, far above the baseline average.