After recent confidence on the labor market from the Federal Reserve and Department of Labor, new data shows unemployment may have started an upswing.
The Department of Labor reported that weekly initial unemployment claims rose to 282,000 in the week ending December 5, an increase of 4.4 percent from the previous week. That drove the four-week moving average for initial unemployment claims above 270,000, above expectations from most economists.
Total mortgage debt owned by Americans rose for the first time this year after falling every year since 2009.
A new study by the Federal Reserve Bank of New York shows that real household mortgage debt outstanding rose from $8.66 trillion to $8.67 trillion from 2014 to 2015. Since this data ends in the second quarter of 2015, some analysts believe that outstanding mortgage debt will continuing to rise, and may see a strong increase in 2016 as more home-buying activity spurs the broader market.
Although manufacturing activity contracted in November, experts see growth in the sector in 2016 as the U.S. economy improves.
The Institute for Supply Management announced Tuesday that it expects manufacturing to grow at a higher rate in 2016 than what we saw in 2015. Throughout the year, the ISM expects manufacturing revenue to rise by 4.1 percent, bolstered by stronger demand from consumers.
After some economists and analysts criticized the Obama administration for doing too little to stimulate job growth, U.S. Secretary of Labor admitted that most Americans are struggling even as the economy gains strength.
In November, a strong increase in payrolls and a steady unemployment rate indicate the U.S. may approach full employment in the near future.
The country added 211,000 non-farm payrolls in November, the Bureau of Labor Statistics said in a report. While this represents a decline from the 298,000 payrolls added in October, it brings the 4-month average to 269,250—a historically high number that may indicate unemployment rates will begin to fall in 2016.
The economy continues to grow and the job market has gotten close to the Fed’s goal of maximum employment, according to Fed Chairwoman Janet Yellen.
Manufacturing activity has fallen sharply, and now total manufacturing activity continues to shrink in the United States.
Personal income demonstrates small gains just as the Federal Reserve hunts for hints of rising inflation to justify increasing interest rates. According to the Bureau of Economic Analysis, personal incomes rose $68.1 billion, or 0.4%, indicating that workers have earned increased total wages and incomes throughout the United States, although the numbers have risen at a modest rate.
GDP growth fell in the third quarter in the United States just as weaker manufacturing data and lower consumer confidence hindered the country’s economic recovery.
Sales of existing homes are beginning to fall as low interest rates on mortgages fail to entice would-be buyers. Existing-home sales fell 3.4% in October from the prior month, according to a new report by the National Association of Realtors. A combination of expensive options, limited inventory growth, and sluggish wage growth has made it hard for Americans to buy houses.
