You are here:Home > Economic Review
Text Size:[L M S]

U.S. Economic Review

·Non-farm payroll increased 252,000 in December, with the unemployment rate dropped from 5.8% to 5.7%,

·But details take some optimism away from the report, as the drop of unemployment partly due to a decline in labor participation rate, dropping to a new 30-year low of 62.7%.

·In addition, the hourly earnings dropped 0.2%, the biggest since 2006. They increased 1.7% comparing to one year ago, the smallest gain in more than 2 years.

·Stagnating wages and falling labor participation rate will limit future economic growth, and restrain the Fed from raising the interest too early and too fast.

·While the ISM manufacturing index remains in expansion territory,  factory orders have dropped for the fourth straight month in November

·Exports also dropped, with even larger drop in import.

Global Economic Review

·The Greek issue is returning to the forefront as it is threatening to reignite fears of a Eurozone breakup. After years of being forced into austerity, Greek economy is still in a bad shape, with little growth to show but a high unemployment rate of 27%. Greek people are fed up, and the possibility of Greece exiting EU cannot be ruled out.

·On the other side of the globe, Brazil posted another very disappointing industrial number for November, dropping 5.8% versus a year ago.