U.S. Economic News

U.S. Economic News

February 4, 2021

U.S. Economic Indicators

Initial jobless claims fell 33,000 to 779,000 last week. The four-week moving average decreased 1,250 to 848,250. DOL Report

Nonfarm business sector labor productivity decreased 4.8% in Q4. Hours worked increased 10.7% while output increased 5.3%; unit labor costs rose 6.8%. BLS Report

New factory orders for manufactured goods rose 1.1% in December following a 1.3% (revised) increase in November. New orders excluding transportation rose 1.4%, while new orders for nondefense capital goods excluding aircraft were up 0.7%. Census Bureau Report

U.S. Economic News

U.S. Economic News

February 3, 2021

U.S. Economic Indicators

The ADP Employment Report shows that private-sector employment increased by 174,000 jobs in December, above consensus estimates. The services sector gained 156,000 jobs, while the goods-producing sector gained 19,000 jobs. ADP Report

The ISM Services Index rose 1.0 point to 58.7 in January, the eighth straight month of growth for the services sector and a slight acceleration compared to December. The New Orders Index increased 3.2 points to 61.8, while the Employment Index increased 6.5 points to 55.2. ISM Report

U.S. Economic News

U.S. Economic News

February 2, 2021

U.S. News

The Wall Street Journal reports that the Congressional Budget Office (CBO) expects U.S. GDP to return to its pre-pandemic level by the middle of 2021, revising its summer forecast upward due to a less severe downturn than expected and a quicker recovery than expected. However, less positively, the CBO also forecasts that employment levels and potential economic output will not return to pre-pandemic levels until 2024 and 2025, respectively. WSJ

The Wall Street Journal reports that many U.S. consumers are shunning cash out of convenience and a desire to avoid virus transmission, driving a surge in contactless payments and digital retail sales. Overall, new payment habits adopted during the pandemic have accelerated a shift away from cash which could help support a quicker economic recovery, since consumers tend to spend more when using a card or digital wallet. WSJ

U.S. Economic News

U.S. Economic News

February 1, 2021

U.S. Economic Indicators

The ISM Manufacturing Index fell 1.8 points to 58.7 in January, indicating industry expansion, though at a slower rate than the prior month. The Employment Index rose 0.9 points to 52.6, while the New Orders Index fell 6.4 points to 61.1. ISM Report

Construction spending rose 1.0% in December to an annualized rate of $1.49 trillion. Private construction rose 1.2% while public construction ticked up 0.5%. Census Bureau Report

U.S. Economic News

U.S. Economic News

January 29, 2021

U.S. Economic Indicators

Real disposable personal income increased 0.2% in December, while real personal consumption expenditures (PCE) decreased 0.6%. The PCE price index rose 0.4% (up 1.3% Y/Y), and the core price index rose 0.3% (up 1.5% Y/Y). BEA Report

The University of Michigan Consumer Sentiment Index declined 1.7 points to 79.0 in the final January reading and is down 20.8 points from January of last year. The Index of Consumer Expectations dropped 0.6 points to 74.0, while the Current Economic Conditions Index declined 3.3 points to 86.7. University of Michigan

The National Association of Realtors Pending Home Sales Index ticked down 0.3% in December (up 21.4% Y/Y). The Midwest was the biggest regional driver of the shift with a 3.6% decrease that more than offset increases or steady numbers in the Northeast, South, and West. NAR Report