Leisure & hospitality, government and healthcare job additions led the November job gains. Hourly wage rates rose 5.1% over the last twelve months and the unemployment rate held at 3.7%.
Despite multiple rate increases in 2022, consumer price inflation, the personal consumption expenditure and core PCE are still elevated and stubbornly high. The Fed is likely to moderate future rate increases but higher rates are likely to prevail longer.
The latest statement from the policymakers suggested more support for smaller rate hikes but also a need to keep lifting rates higher and sufficiently restrictive for the economy.
Housing starts and permits continued to slide in October but completions rose from a year ago in October. The housing starts have been declining since April when mortgage rates started to climb.
Retail sales rose in October driven by higher gasoline and auto dealers sales but department stores and electronics and appliances sales continued to decline in the month and the year.
Consumer prices rose at a slower pace in October after goods prices increase eased and apparel and used vehicle price indexes dropped. Medical and transportation services indexes declined as well.
Weekly jobless claims increased but the report is likely to understate the count as several states including Florida and New Jersey have still not fixed access to broken filing systems for months.
