The U.S. economy continues to show signs of recovery as initial jobless claims fell to its lowest level in 15-months and demand for long lasting goods increased. The labor market which is considered a lagging indicator has started to show a pulse with November’s Non-farm payroll report showing the country lost only 11,000 jobs.The U.S. economy continues to show signs of recovery as initial jobless claims fell to its lowest level in 15-months and demand for long lasting goods increased. The labor market which is considered a lagging indicator has started to show a pulse with November’s Non-farm payroll report showing the country lost only 11,000 jobs. Therefore, the economy may have generated jobs in December for the first time in two and half years. The improving job market is starting to translate into greater consumption from Americans which was evident in the 0.2% improvement in Durable Goods orders. The 2.0% gain in the ex-transportation is a sign that broader demand is improving. A look at the breakdown shows rebounds in machinery to 3.5% from -7.5% and computers/electronics to 3.7% from -1.9%. The dollar gained as the improving fundamentals raised the outlook for U.S. interest rates ending its two day slide.
Written by John Rivera
dailyfx.com
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