Costs rise, jobless claims fall-US
2022.12.01 09:20
Costs rise, jobless claims fall-US
Budrigannews.com – Economic spending in the United States increased significantly in October, and inflation declined, which led to a powerful boost to the economy at the beginning of the fourth quarter, as it focuses on high interest rates.
On Thursday, the Ministry of Commerce reported that spending on consumer products, which amounts to more than $ 2 trillion, increased by 0.8 after an unexpected increase of 0.6 in September. In October, the growth of economists’ expectations justified the growth.
The growth of salaries against the background of market stability, the one-time payment of California taxes (as a result of which some families received up to $1,050 as a stimulus check), the adjustment of the cost of living of food stamp recipients – all these factors contributed to the increase in spending over the past month.
In the fight against high inflation, the Federal Reserve Service is at the beginning of the fastest cycle of rate increases in the 1980s, which increases the likelihood of growth in the coming year.
Fed Chairman George Powell said on Wednesday that the US Central Bank could “slow down rate hikes” in December.
This intention was supported by moderate inflation last month. In September, compared to September, the PCE personal expenses price index increased by 0.3. In September, compared to September, the PCE price index increased by 6.0. In September, after an increase of 0.5%, the PC price index increased by 0.2%, excluding unstable components of energy and food. In September, the so-called main price index for PCE increased by 5.0. In order to achieve its goal of 2 times, the Fed monitors the price indices of PCE.
There are signs that other inflation indicators have slowed down. For the first time in eight months, the consumer price index rose less than on October 8. The Fed this year raised the discount rate by 375 basis points from zero to 3.75 to 4.0. Although demand for workers has decreased, the labor market news has remained positive.
According to a separate report by the Ministry of Labor on Thursday, initial applications for state pensions decreased by 16 thousand to 225 thousand, taking into account seasonal fluctuations for the week ending December 26. This slightly reduced the increase compared to last week, and therefore doubts arose.
Despite the fact that some of the increases were due to an increase in the number of technology layoffs, requirements often change at the beginning of the vacation. In general, the number of infected remains comparable to the level that existed before the pandemic.
Economists have been waiting for 235 thousand appeals in recent weeks. “Some contacts expressed their unwillingness to dismiss employees due to difficulties with the search, although their need for labor has been reduced,” the Fed’s Beige Book noted in November of “scattered” layoffs in the technology, financial and real estate sectors.
The third report on the Challenger Gray Christmas global outplacement, which was published on Thursday, showed that technological layoffs contributed to an increase in the number of job cuts announced by American companies in November.
Last month, it is planned to reduce 76,835 jobs by 127 people. The technology industry announced the dismissal of 52,771 people, which is the highest figure since 2000. There was also significant growth in the automotive industry, in the production of consumer products, in construction, in medicine and transport.
Employers this year reported a reduction of 320,173 jobs, which is six more than in the same period of 2021.
Although the total number of decreases at the beginning of the year is in second place among the record lows.
