Category: Economic Conditions

Euro Stabilizes as Oil Plummets

The euro rose from its lowest point over a decade against the dollar as oil prices continued to fall.

For the second day straight, the euro rose slightly against the U.S. dollar even as analysts await news from the Federal Reserve’s Federal Open Market Committee about its plans to change its Federal funds rate target. Many economists expect the FOMC to remove the word “patient” from its statement, hinting to the market that a rate hike is set to come as early as June.

Employers Add Jobs at Fastest Rate in 17 Years

American companies gain more confidence in the economy by adding in 295,000 jobs in February. This marks the continued addition of jobs added above the 200,000 mark for 12 months.

Liberals carrying water for the Obama administration will tout this jobs report as a major success for the president, and it is typical for every president to get his due when the economy improves. But this development comes with some drawbacks. For one thing, these jobs did not boost wages, something that forces many Americans to work two or three jobs to make ends meet.

U.S. Hourly Earnings Below 1.5% on Higher Labor Supply

American wages are rising at a sharply slower pace despite a rise in job gains, indicating deflationary pressures could force the Federal Reserve to delay an interest rate hike.
In last week’s employment report for February, the Bureau of Labor Statistics noted that average hourly earnings for private nonfarm payrolls rose 3 cents, or an annualized increase of 1.45%. While still positive, the growth is a sharp decline from a year ago, when hourly earnings were rising by as much as 2.5%.

The Week in Review: Spending Falls, Mixed Employment Signals in U.S.

The average U.S. consumer is pulling back on spending as mixed signals warn of a volatile job market.

One government report indicated that Americans are earning more than they used to, but those income gains are not translating into larger spending. At the same time, less spending from manufacturers and other companies suggests an economic contraction may be on the horizon.

U.S. Indicators Show Sudden Positive Reversal

Two separate economic indicators show a sudden reversal, hinting that recent weakness in the U.S. might have been temporary.

Independent payroll services firm ADP announced on Wednesday morning that private employment rose by 212,000 jobs in February, with goods-producing jobs rising by 31,000 and construction industry jobs gaining 31,000. Manufacturing was the weakest sector, according to the report, but still saw 3,000 new jobs relative to January.

The biggest gains were found in the service sector, which saw employment rise by 181,000 jobs in February.

Canada, Switzerland See Stronger Growth

Economic growth in Canada and Switzerland beat expectations, but currency issues are causing analysts to urge caution for the future.

In the fourth quarter of 2014, Canada saw GDP rise by 2.4% annualized, according to a statement by Statistics Canada issued on Tuesday. The growth was above expectations although slightly lower than third quarter growth, which rose by 3.2%, according to a revised estimate. Economists had expected 2% economic growth.