What is the latest news on the US economy?
Asked 2 hours ago
Answer
Recent data shows the US economy with mixed signals: unemployment has declined and wage growth is outpacing inflation, but job creation is slowing and manufacturing is near recession. Retail sales and wholesale inflation are rising, but not enough to prompt near-term Fed rate cuts. Jobless claims have dropped to historic lows, indicating labor market strength, while consumer sentiment has improved. Inflation remains above target, with the Fed projecting gradual rate cuts in 2025.
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U.S. jobless claims unexpectedly tumble to 198,000
- Jobless claims dropped to 198,000, a notable decrease.
- Last week's claims revised down to 207,000. 5s
- Continuing claims fell to 1,884,000 from 1,903,000. 21s
- Import prices rose just 0.1%, showing little tariff impact. 29s
- Labor market remains strong as claims fall and workforce grows. 54s
References
A growing labor force means more Americans are working, and falling jobless claims show the labor market remains strong. The decline in claims is more impressive as a percentage of the expanding labor force, indicating fewer people are losing jobs.
Based on annual PPI figures and strong retail sales, interest rate cuts are unlikely in the near term, and inflation remains a concern. November retail numbers, including Black Friday, were weaker than expected for holiday gift sales.
Recent jobs report shows improvement in unemployment rate, but monthly job additions have significantly decreased. Annual job growth was under 600,000, the lowest outside a recession since 2003, with manufacturing nearly in recession and retail trade losing 25,000 jobs.
Unemployment rate dropped to 4.4% from 4.6% last month, partly due to government workers previously misclassified as unemployed. Nonfarm payrolls increased by 50,000, but net revisions resulted in a three-month decline of 26,000 jobs.
