U.S. homebuilder sentiment drops

Confidence among U.S. homebuilders fell in June to the lowest level since December 2022, with potential buyers deterred by high mortgage rates and anxiety about tariffs and the economy.

A gauge of market conditions from the National Association of Home Builders and Wells Fargo slipped 2 points to 32 this month. Economists expected 36 in a Bloomberg survey.

All three of the overall index’s components declined, with a measure of present sales falling to the lowest level since 2012. Gauges of traffic of prospective buyers and expected sales over the next six months are both at the weakest point in more than a year, NAHB data show.

The trade association is forecasting a decline in single-family starts this year, given weakening conditions, NAHB Chief Economist Robert Dietz said in a statement. To entice reluctant buyers, builders have increasingly relied on sales incentives and discounts. The share of respondents reporting cutting prices in June rose to 37%, the highest since NAHB started tracking it monthly in 2022.

Builders anticipate that President Donald Trump’s tariff policies could boost construction costs by almost $11,000 a home, based on a previous NAHB survey. And, while the supply of previously owned homes is growing and helping would-be buyers, it’s also providing more competition to the new-home industry.

U.S. Retail Sales Drop for Second Month

U.S. retail sales fell for a second straight month in May, suggesting anxiety over tariffs and personal finances prompted consumers to pull back after an early-year spending rush.

The value of retail purchases, not adjusted for inflation, decreased 0.9%, the most since the start of the year and restrained by autos, Commerce Department data showed Tuesday. That followed a downwardly revised 0.1% drop in April, marking the first back-to-back decline since the end of 2023.

Other data out Tuesday pointed to cooler demand across sectors of the economy. Industrial production decreased in May for the second time in three months, reflecting weaker utility output and soft manufacturing. Confidence among homebuilders in June slumped to the lowest since the end of 2022, as would-be buyers stay on the sidelines.

In the retail sales report, seven of the 13 categories posted drops, dragged down by building materials, gasoline and motor vehicles

JetBlue plans cuts by eliminating flights

JetBlue Airways Corp. plans to hasten cost cuts by eliminating some flights, ending service to a number of cities and restructuring its leadership ranks as economic uncertainty feeds weaker-than-expected demand for travel, the company said in an internal memo. The carrier will eliminate underperforming routes and plans to announce network changes in coming weeks, according to the memo from Chief Executive Officer Joanna Geraghty seen by Bloomberg on Tuesday.

JetBlue implemented budget reductions at support centers and is assessing hiring, spending on business partners and vendors and will combine or restructure some leadership roles. The carrier has halted cosmetic refreshes of four out of its 10 legacy Airbus A320 aircraft used for flights and will park the planes at the end of summer.

Compiled from AP and Bloomberg reports.