Live news updates from December 22: Bankman-Fried released on $250mn bond, UK economy contracts by more than expected


The US economy continued to point out indicators of resilience, in keeping with the newest jobless declare and GDP knowledge, doubtlessly complicating the Federal Reserve’s plans to sluggish the tempo of its financial tightening marketing campaign because it combats elevated inflation.

Initial state unemployment claims ticked up barely to 216,000 on a seasonally adjusted foundation within the week ending December 17, up from a revised 214,000 the week earlier than, in keeping with labour division knowledge. But that was nonetheless decrease than the 222,000 unemployment assist functions economists expected.

Continuing claims, which embrace the quantity of people that have beforehand obtained unemployment insurance coverage, decreased by 6,000 to 1.67mn from a determine revised as much as 1.68mn the prior week. Economists expected a rise.

Earlier this month, preliminary unemployment claims rose to their highest quantity since February, which had appeared to sign a cooling job market. But Thursday’s figures counsel the labour market stays resilient and at this level withstanding the Fed’s efforts to chill the economy.

The S&P 500 was down 1.5 per cent in morning buying and selling on Thursday. Before the discharge of the info, futures tipped the benchmark index to open about 0.3 per cent decrease.

Separately, the commerce division released its ultimate estimate for the nation’s third-quarter actual gross home product, which was unexpectedly revised as much as an annual fee of three.2 per cent from a earlier estimate of two.9 per cent.

The replace “primarily reflected upward revisions to consumer spending and non-residential fixed investment,” the commerce division mentioned.

The total improve in third-quarter GDP got here after two consecutive quarters of financial contraction as exports, shopper spending, non-residential mounted funding, and native, state and federal authorities spending all elevated.

The Fed’s most well-liked inflation metric, the core private consumption expenditures value index, which excludes unstable meals and power prices, was revised up for the third quarter to 4.7 per cent from the earlier quarter, in comparison with a earlier estimate of 4.6 per cent.

Earlier this month, the US central financial institution slowed the tempo of its fee will increase. Fed officers shortly sought to stamp out doubts it will not squeeze the economy with the mandatory drive wanted to decrease inflation that continues to be elevated regardless that it could have peaked.

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