Signs of a soft landing for the U.S. economy brought the three major U.S. stock indexes to their first surge in 2023 on the 6th, all rising by more than 2%.

(Reuters file photo)

[Compile Wei Guojin/Comprehensive Report] The U.S. labor force surged last month while wage growth slowed down. In addition, another data showed that the U.S. service industry activity in the same month was more than two.

The first decline in five months shows that the U.S. labor market is moving towards the direction that the Federal Reserve (Fed) is seeking to balance labor supply and demand in order to combat inflation. Signs of a soft landing for the U.S. Japan ushered in its first big rise in 2023, with an increase of more than 2%.

Service sector index falls below boom-bust line

The US Institute of Supply Management (ISM) announced on the 6th that the service industry activity index in the US in December last year increased from 56 in November.

Five dropped sharply to forty-nine.

Six, not only far below the expected fifty-five.

First, it is also the first time since May 2020 that it has fallen below the 50 line of expansion and contraction, entering the tightening range.

On the same day, the U.S. Department of Labor announced that the United States added 22 new non-agricultural jobs in December.

30,000 copies, higher than expected, but the average hourly salary increased ○.

3%, compared with November's ○.

It slipped four percent and was below expectations.

Please read on...

Labor surge, wage growth slows

Verdence Capital Management Chief Investment Officer Hornman said, "On the inflation side, we have good news that wage growth is slowing, labor force participation is rising again, while still creating jobs. This is a win-win situation for the economy. On the other hand, ISM services The industry report was weak across the board. Markets took off as the data made people think that one of the most aggressive tightening cycles by the Fed in decades was nearing completion."

The Dow rose 700 points on the 6th, or two.

1%, S&P 500 and Nasdaq rose 2.0% respectively.

three two.

six%.

Nearly one in 100 Americans were working or looking for work last month, Reuters reported.

6.5 billion people, a record high. At the same time, the average hourly wage has increased by four.

6%, the slowest growth rate in 16 months, a full percentage point drop from the end of the first quarter of 2022.

The average weekly salary increased by three times a year.

1%, the slowest pace since May 2021.

Mokuta, chief economist at State Street Global Advisors, said the jobs report "embodied the soft-landing narrative of a strong labor market coupled with slower wage growth," which, she said, should ideally allow the Fed to relax. Slow and soon pause rate hikes.

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