Last week the U.S. Bureau of Economic Analysis (BEA) released the real, or inflation adjusted, GDP estimate for Q2 2021 showing the economy growing at 6.5 percent. Under normal conditions that is a scorching hot economy, but in context of the U.S. economy’s recovery from COVID it is less impressive; the pre-report consensus was 8.4 percent growth. The drag on growth was inventories as manufacturers were dipping into supplies to cover consumer demand which remained higher than recovering production rates. Consider that production is equal to sales plus changes in inventory, so even though sales have remained strong, manufacturers’ inventories are not only not being rebuilt to pre-COVID levels, but they were also, in...
What You Need to Know Today: Russia rejected calls for a ceasefire in the Black Sea, including a proposal to halt attacks on civilian shipping that could help restore grain flows from Ukrainian ports. Tyson Foods announced plans to permanently close its Joslin, Illinois, beef processing facili...
The big news in the cattle markets yesterday was Tyson Foods’ move to close two more beef plants. One of them, the Joslin, Illinois, plant was shuttered immediately after the announcement. The other, in Eagle Mountain, Utah, is a case-ready plant that does not slaughter cattle. Tyson also...
The Bureau of Labor Statistics (BLS) released the Consumer Price Index (CPI) on Wednesday. In July, the CPI rose 0.1 percent, seasonally adjusted, and rose 3.4 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy, or the “core” infla...
From WPI Consulting
Weighing in on strategic realignment
WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.