The omicron variant’s spread put pressure on industrial production in December as production declined by 0.1%, missing the estimate of a 0.2% increase on the month, according to data from the Federal Reserve on Friday. … READ MORE >
coronavirus
RSM US Financial Conditions Index: A move toward normal
After nearly two years of extreme accommodation in the financial markets, the RSM US Financial Conditions index eased to 0.96 standard deviations above neutral—a sign that markets are starting to price in more risk. … READ MORE >
U.S. retail sales decline despite a strong holiday season
Price pressures and continued labor shortages magnified by the rapid spread of the omicron variant drove retail sales down by a disappointing 1.9% in December. … READ MORE >
Americans’ real earnings are higher today than before the pandemic
Even as prices have soared in recent months, American workers are earning more than they did before the pandemic as the overall gains in their wages have outpaced inflation over the past two years. … READ MORE >
Initial U.S. jobless claims exceed pre-pandemic level as omicron variant sets in
New filings for jobless benefits last week rose to 230,000 from 207,000 in the prior week, exceeding the average pre-pandemic level for the first time in six weeks as the impact of the omicron variant began to be felt in the labor market. … READ MORE >
RSM Canada Financial Conditions Index shows the return of risk
Risk is being reintroduced into Canada’s financial markets as investment decisions and monetary policy begin to pivot from interest rates at the zero bound. … READ MORE >
U.S. December jobs report: Economy has strongest year of job creation on record
The total number of jobs created last year was roughly 6 million as the unemployment rate declined from 6.5% at the start of the year to 3.9%. … READ MORE >
Chart of the day: Service sector grew at slower pace in December
The purchasing managers’ index for services grew at a much slower rate in December as supply chain delays continued to put a drag on service activities. … READ MORE >
Canada’s merchandise trade surplus increases, lifted by vaccine production
Canada’s international merchandise trade surplus widened to 3.1 billion CAD in November because of an unexpected source: the mass production of the COVID-19 vaccine. … READ MORE >
Initial jobless claims remain below pandemic level despite seasonal uptick
New filings for unemployment insurance last week ticked up to 207,000 from 198,000, continuing to stay below the pre-pandemic level amid a tight labor market where businesses are holding onto their workers. … READ MORE >