U.S. consumer prices up 0.3% in January, led by energy spike
Energy costs jumped 3.5%, led by a 7.4% surge in gasoline. Even with the spike, gasoline prices are 8.7% below where they were a year ago.
Economy
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U.S. employers add just 49K jobs as unemployment falls to 6.3%
The January figures from the Labor Department reflect a faltering job market, slowed by a pandemic that is still causing consumers to avoid traveling, shopping, dining out, attending entertainment venues and engaging in other forms of face-to-face contact.
U.S. service sector operates at highest level in almost two years
Last month’s gain came as a surprise to economists who had been looking for a slight decline given that the country was battling a severe resurgence of virus cases in January.
U.S. factories showed growth in January, but at slower pace
The Institute for Supply Management’s survey of businesses showed that 16 of 18 manufacturing industries showed growth in January. The contracting industries were printing and petroleum.
Congressional Budget Office projects 4.6% growth in 2021
The CBO cautioned that its projections are highly uncertain, in large part because of the pace of the vaccination and the risk of new variations of the coronavirus.
U.S. employment costs rose modestly in fourth quarter
Wages and benefits for U.S. workers rose in the last quarter of the year, putting all of 2020 in somewhat of a normal range as the pandemic continued to rankle the economy.
Biden announces $1.9T pandemic rescue plan
President-elect Joe Biden unveiled a stimulus plan Thursday intended to speed up vaccines and pump out financial help to those struggling with the pandemic’s prolonged economic fallout.
Consumer prices up 0.4% in December, led by higher gas prices
Inflation for all of 2020 rose a modest 1.4%, well below the Federal Reserve’s 2% target. Analysts believe inflation will remain subdued with the U.S. economy still unable to break out of a pandemic-induced downturn.
U.S. sheds 140,000 jobs, first monthly loss since spring
Friday’s figures from the Labor Department suggest that employers have rehired roughly all the workers they can afford to after having laid off more than 22 million in the spring—the worst such loss on record.
World Bank sees subdued recovery in 2021, plenty of risk
Because of the uncertainty caused by the current resurgence in virus cases and initial problems in distributing vaccines, the World Bank cautioned that its forecast is highly uncertain.
U.S. plants hope to maintain production despite virus threat
Safeguards manufacturers put in place to try to protect workers have helped plants nearly keep up with last year’s production levels. But with the virus spiking in communities that surround the plants, industry and union officials say it may be impossible to keep the virus out of factories.
‘Trickle-down’ tax cuts make rich richer but don’t boost economy, study finds
The authors say their findings offer one clear pathway for policymakers looking to dig their way out of the financial hole created by the coronavirus crisis: Make the rich pay for it.
Consumer spending drops 0.4% in first decline since April
In addition, personal incomes fell 1.1% in November, the third drop in the past four months as various government relief programs have been expiring.
U.S. layoffs remain elevated as 803,000 seek jobless aid
The latest figure, released Wednesday by the Labor Department, shows that many employers are still cutting jobs as the pandemic tightens business restrictions and leads many consumers to stay home.
S&P 500 slumps on virus angst after European rout
A new variant of the coronavirus in the U.K. and a wave of lockdowns and travel restrictions damped global trading, but in the U.S. a stimulus deal kept bigger losses at bay.
Nearly 8 million Americans have fallen into poverty since the summer
Households with children have also seen a larger-than-average increase in poverty, as many parents have struggled to go back to work while their kids participate in virtual schooling from home.
U.S. industrial production rises 0.4% with boost from auto sector
Production of motor vehicles and parts rose 5.3% in November, the biggest monthly increase since a 31% surge in July.
U.S. productivity increased at 4.6% rate in third quarter
Economists cautioned that the swings in productivity this year have been unusually large and are distorting the underlying trend in productivity.
Jobs report to show how much pandemic is squeezing hiring
Friday’s monthly U.S. jobs report will help answer a key question overhanging the economy: Just how much damage is being caused by the resurgent coronavirus, the resulting curbs on businesses and the reluctance of consumers to shop, travel and dine out?
Fed reports slowing U.S. economic activity due to virus surge
The report said that among the sectors doing better were manufacturing, housing construction and existing home sales. But banks said there had been deterioration in their loans, particularly those to retailers and the leisure and hospitality industries.