U.S. Economic News

February 5, 2020

U.S. Economic Indicators

The ADP Employment Report shows that private-sector employment increased by 291,000 jobs in January, well above expectations. The services sector added 237,000 jobs, while the goods-producing sector added 54,000 jobs. ADP Report

The ISM Non-Manufacturing Index rose 0.6 point to 55.5 in January. The New Orders Index rose 0.9 point to 56.2, while the Employment Index declined 1.7 points to 53.1. ISM Report

The U.S. trade deficit widened from $43.7 billion (revised) in November to $48.9 billion in December. The goods deficit increased by $5.1 billion while the services surplus edged down $0.1 billion. Census Bureau Report

U.S. News

The Wall Street Journal reports that a bipartisan group of lawmakers is pushing for the SEC to make changes in the credit-ratings industry to eliminate the conflict of interest where entities that sell bonds also pay for ratings, considered one of the causes of the financial crisis. A previous study by the Journal found evidence that competition among credit ratings firms incentivized loosening standards to win business. WSJ