Economic and jobs news thread

weatheriscool
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weatheriscool
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Private payrolls surged by 296,000 in April, much higher than expected, ADP says
Source: CNBC
Hiring at private companies unexpectedly swelled in April, countering expectations for a cooling job market ahead, payroll processing firm ADP reported Wednesday.

Private payrolls rose by 296,000 for the month, above the downwardly revised 142,000 the previous month and well ahead of the Dow Jones estimate for 133,000. The gain was the highest monthly increase since July 2022.

The surge comes despite Federal Reserve efforts to slow economic growth and in particular to tame a powerful labor market that has added more than 800,000 jobs this year by ADP’s count. An imbalance of demand over supply in the labor market has created strong wage gains that are reflected in persistent inflation pressures.

One positive sign for the Fed is that annual pay rose 6.7% over the past year, a deceleration from gains that had been consistently coming in above 7%. “The slowdown in pay growth gives the clearest signal of what’s going on in the labor market right now,” ADP chief economist Nela Richardson said. “Employers are hiring aggressively while holding pay gains in check as workers come off the sidelines.”
Read more: https://www.cnbc.com/2023/05/03/adp-job ... -2023.html
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IA: Lawmakers approve bill loosening restrictions on home-based food businesses
The Senate sent legislation to the governor Wednesday that would loosen regulations on Iowans selling food made at home and in temporary establishments such as farmer’s market stands.

House File 661 passed Wednesday on a 33-15 vote. The bill’s floor manager, Sen. Jesse Green, R-Boone, said the legislation is “pro-small business,” helping home food and processing establishments, food processing plants and temporary food establishments, and farmers’ market vendors.

The bill sent to Gov. Kim Reynolds follows a 2022 law, House File 2431, which allows people to create businesses making food in their homes to be sold in stores. This law only allowed the sale of food that is not time or temperature-controlled for safe consumption or preserved foods like jams, pickles, chocolate or spices, or those under 41 degrees.

Home-based restaurants would still not be allowed under the bill, but the legislation would allow home food businesses to sell food made for immediate consumption.

“A classic example of this would be they can sell cold pizza, but not hot pizza,” Green said. Other states with similar “food freedom laws” do not have regulations restricting them from serving hot food, he said.


https://iowacapitaldispatch.com/2023/05 ... usinesses/
weatheriscool
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Job growth totals 253,000 in April, beating expectations even as the U.S. economy slows

Source: CNBC
Job growth fared better than expected in April despite bank turmoil and a decelerating economy, the Labor Department reported Friday.

Nonfarm payrolls increased 253,000 for the month, beating Wall Street estimates for growth of 180,000, according to the Bureau of Labor Statistics.

The unemployment rate was 3.4% against an estimate for 3.6% and tied for the lowest level since 1969. A more encompassing number that includes discouraged workers and those holding part-time jobs for economic reasons edged lower to 6.6%.

Average hourly earnings, a key inflation barometer, rose 0.5% for the month, more than the 0.3% estimate and the biggest monthly gain in a year. On an annual basis, wages increased 4.4%, higher than the expectation for a 4.2% gain. Both numbers raise the chances that the Federal Reserve could decide to raise interest rates again in June, though markets were only pricing in a small probability following the jobs report.
Read more: https://www.cnbc.com/2023/05/05/jobs-re ... april.html
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Inflation rose 4.9% in April from a year ago, less than expectations

Source: CNBC

A widely followed measure of inflation rose in April, though the pace of the increase provided some hope that the cost of living will head lower later this year.

The consumer price index, which measures the cost of a broad swath of goods and services, increased 0.4% for the month, in line with the Dow Jones estimate, according to a Labor Department report Wednesday.

However, that equated to an annual increase of 4.9%, slightly less than the 5% estimate. Excluding volatile food and energy categories, core CPI rose 0.4% monthly and 5.5% from a year ago both in line with expectations.

Increases in shelter, gasoline and used vehicles pushed the index higher, and were offset somewhat by declines in prices for fuel oil, new vehicles and food at home.
Read more: https://www.cnbc.com/2023/05/10/cpi-inf ... -2023.html
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Wholesale prices rose just 0.2% in April, less than estimate as inflation pressures ease

PUBLISHED THU, MAY 11 20238:42 AM EDTUPDATED 3 HOURS AGO

Jeff Cox
https://facebook.com/jeff.cox.7528
https://twitter.com/JeffCoxCNBCcom[quote]

KEY POINTS
• The producer price index, a measure of prices for final demand goods and services, increased 0.2%, against the Dow Jones estimate for 0.3%.
• Headline PPI rose just 2.3%, down from 2.7% in March and the lowest reading since January 2021.
• Portfolio management costs and gasoline prices helped push the increase, while a 37.9% plunge n chicken egg prices helped keep the number in check.
• In other news, weekly jobless claims jumped to 264,000, the highest reading since Oct. 30, 2021.

Wholesale prices rose less than expected in April, according to a Labor Department report Thursday that provides more hope that inflation is at least trending lower.

The producer price index, a measure of prices for final demand goods and services, increased 0.2%, against the Dow Jones estimate for 0.3% and after declining 0.4% in March. Excluding food and energy, the core PPI also rose 0.2%, in line with expectations. The core reading was the same excluding trade.

On an annual basis, the headline PPI increased just 2.3%, down from 2.7% in March and the lowest reading since January 2021.

Though the PPI rise was less than expected, the services index increased 0.3%, the biggest move since November 2022, the Bureau of Labor Statistics report stated.

A separate Labor Department report Thursday showed that jobless claims for the week ended May 6 jumped to 264,000, a rise of 22,000 from the previous period. The total was well above the Dow Jones estimate for 245,000 and the highest reading since Oct. 30, 2021. Continuing claims edged higher to 1.81 million.
[/quote]
{snip}

Read more: https://www.cnbc.com/2023/05/11/wholesa ... -ease.html
weatheriscool
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weatheriscool
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Re: Economic and jobs news thread

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US weekly jobless claims fall; labor market defying recession fears
Source: Reuters

WASHINGTON, May 18 (Reuters) - The number of Americans filing new claims for unemployment benefits fell more than expected last week, with applications in Massachusetts decreasing sharply, suggesting the labor market remains tight.

The steep decline in weekly jobless claims reported by the Labor Department on Thursday reversed the surge in the prior week, which had boosted them to the highest level since Oct. 30, 2021. That increase was largely blamed on an unusual jump in applications for unemployment insurance in Massachusetts.

The state's Department of Unemployment Assistance said last week it was "experiencing an increase in fraudulent claim activities in which people attempted to gain access to active UI accounts or file new UI claims using stolen personal information so they can fraudulently obtain unemployment benefits."

"The labor market is not deteriorating like we had thought as jobless claims were pumped up to recession levels by fraudulent applications for unemployment benefits," said Christopher Rupkey, chief economist at FWDBONDS in New York. Initial claims for state unemployment benefits declined 22,000 to a seasonally adjusted 242,000 for the week ended May 13. The drop was the largest since Nov. 20, 2021. Economists polled by Reuters had forecast 254,000 for the latest week.
Read more: https://www.reuters.com/markets/us/us-w ... 023-05-18/
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Fitch puts United States' AAA rating on negative watch, citing debt ceiling fight
Source: CNBC
Fitch put the United States’ AAA long-term foreign-currency issuer default rating on negative watch Wednesday evening, pointing to brinksmanship over the debt ceiling.

“The Rating Watch Negative reflects increased political partisanship that is hindering reaching a solution to raise or suspend the debt limit despite the fast-approaching x date,” the rating agency said.

Futures linked to the Dow Jones Industrial Average briefly slipped about 100 points after Fitch, one of the big three ratings agencies, issued its note. The so-called X-date, which is when the U.S. could default on its debt, could arrive as early as June 1, according to Treasury Secretary Janet Yellen.

Fitch noted that it still expects Washington officials to arrive at a resolution before the deadline. “However, we believe risks have risen that the debt limit will not be raised or suspended before the X-date and consequently that the government could begin to miss payments on some of its obligations,” the rating agency said.
Read more: https://www.cnbc.com/2023/05/24/fitch-u ... iling.html
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The US economy grew faster in the first quarter than previously reported
https://www.cnn.com/2023/05/25/business ... index.html

Washington, DC
CNN
US economic growth in the first three months of the year was faster than previously estimated, the Commerce Department reported on Thursday.

Gross domestic product, the broadest measure of economic output, increased at an annualized rate of 1.3% in the first quarter, up from an initial estimate of 1.1% reported last month. GDP is adjusted for inflation and seasonality.

The change was mostly driven by an upward revision to private inventory investment, which includes finished goods, materials, and works in progress being saved for a later date. That means inventory investment had less of a drag on GDP earlier this year.

GDP grew at a slower pace in the January-through-March period compared with the previous quarter and was below economists’ expectations. Robust consumer spending, which accounts for about two-thirds of economic output, helped fuel the first quarter’s growth, along with strong government outlays. Businesses cut back their spending on equipment during that period.

So far, economic activity seems to be holding up. Retail sales rebounded in April following two months of declines, advancing a seasonally adjusted 0.4% from the prior month. Employers added 253,000 jobs in April, a strong gain, and average hourly earnings grew 0.5% that month.
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