Publications

U.S. Economic Indicators

The U.S. economy gained 245,000 jobs in November, well below expectations. The unemployment rate declined by 0.2 percentage point to 6.7% while the labor force participation rate fell 0.2 percentage point to 61.5%. BLS Report

The U.S. trade deficit widened from $62.1 billion (revised) in September to $63.1 billion in October. The goods deficit rose by $0.6 billion while the services surplus fell by $0.4 billion. Census Bureau Report

New factory orders for manufactured goods rose 1.0% in October following a 1.3% (revised) increase in September. New orders excluding transportation were up 1.0%, while new orders for nondefense capital goods excluding aircraft rose 0.8%. Census Bureau Report

U.S. Economic Indicators

The ISM Services Index fell 0.7 point to 55.9 in November, indicating continued growth in the services sectors but at a slower pace than October. The New Orders Index fell 1.6 points to 57.2, while the Employment Index increased 1.4 points to 51.5. ISM Report

Initial jobless claims fell 75,000 to 712,000 last week. The four-week moving average decreased 11,250 to 739,500. DOL Report

U.S. Economic Indicators

The ADP Employment Report shows that private-sector employment increased by 307,000 jobs in November, below expectations. The services sector gained 276,000 jobs, while the goods-producing sector gained 31,000 jobs. ADP Report

U.S. News

The Financial Times reports that ex-Fed chair and Biden Treasury Secretary pick Janet Yellen is warning about the potential for “more devastation” as self-reinforcing recession effects take hold in the absence of quick government action. Her comments provide insight into the first priorities for the incoming presidential administration, which are expected to include additional spending on unemployment benefits and aid for small businesses and state and local governments. FT

U.S. Economic Indicators

The ISM Manufacturing Index fell 1.8 points to 57.5 in November. The Employment Index fell 4.8 points to 48.4, while the New Orders Index fell 2.8 points to 65.1. ISM Report

Construction spending rose 1.3% in October to an annualized rate of $1.44 trillion. Private construction rose 1.4% while public construction ticked up 1.0%. Census Bureau Report

U.S. Economic Indicators

The National Association of Realtors Pending Home Sales Index fell 1.1% in October (up 20.2% Y/Y). NAR reports that the combination of scarce housing, low mortgage rates, and strong demand are starting to push home prices to levels that may hurt affordability. NAR Report

U.S. News

The Wall Street Journal reports that President-elect Joe Biden intends to nominate a series of both liberal and centrist economic advisers to fill out the top economic policymaking positions in his administration. Several of these advisers played key roles in dealing with the aftermath of the last financial crisis, and many members of the new team have stated that aggressive stimulus is necessary to get the economy back to its pre-pandemic health and the benefits of spending now far outweigh the risks of spending or borrowing too much. WSJ