Despite nine interest rate hikes over the last one year, the U.S. economy continued to add jobs above its long term average in March. Job additions cooled but the report signaled labor market conditions remain tight.
Initial jobless claims declined in the last week from the sharply upwardly revised claims in the previous week using the new methodology of adjusting for seasonality.
The U.S. International trade shrank in February and the deficit expanded after exports fell faster than imports. U.S. recorded trade deficit with all key trading partners led by China, Mexico, Japan and the European Union, South Korea and India.
U.S. economic growth in the fourth quarter was revised lower in the third and final estimate, reflecting slower consumer spending increase and a decline in international trade.
The Federal Reserve revised its key lending rate range by 25 basis points and reassured that the U.S. banking system is "sound and resilient." The Fed also lowered its economic growth estimate and revised higher its inflation estimate for 2023.
Existing home sales rose for the first time in 13-months in February and median price dropped. Despite the elevated mortgage rates and near record prices, home buyers stepped up with all-cash purchases averaging near 18% of all purchases.
Payrolls expanded at a strong pace in February, reflecting tight labor market conditions as businesses in leisure and hospitality, retail trade and government added positions but wage gains moderated.
Job openings eased in January but stayed near recent high as available jobs outpaced workers. Record quits in 2022 also suggested increasing turbulence in the labor market and worker confidence in mobility.
