It is a daily ritual for millions of Australians, but if you have noticed the price of your morning flat white or soy latte increase, brace yourself — it is likely to get worse.
By the end of the year,...
It is a daily ritual for millions of Australians, but if you have noticed the price of your morning flat white or soy latte increase, brace yourself — it is likely to get worse.
By the end of the year,...
Mortgage rates have slightly increased to 7.34%, but their future direction depends on the labor market. Rising homeownership costs also include increasing insurance and taxes, especially in areas prone to natural disasters. While the housing inventory is improving, concerns have been raised about a change in commission arrangements for real estate agents, which may affect home sales.
A government report will be released on Wednesday showing that inflation is still high. The expected increases in price may signal that the Federal Reserve will not be able to lower interest rates as soon as hoped. This would affect consumers, investors, and the economy as a whole. Despite some progress made in reducing inflation, it has been slower than expected, and concerns remain about rising housing and energy costs.
The U.S. economy added a strong 303,000 jobs in March, with the lowest unemployment rate in over two years at 3.8%. Despite cooling slightly from the "great resignation" era, the job market remains healthy, with employers providing ample job opportunities and real wage growth for workers. This positive labor market outlook benefits both workers and the economy without signs of overheating.
Inflation based on the Fed's index rose in January, primarily due to services costs. Goods prices declined. Despite a surprising increase in income, spending decreased. The tight labor market continues, with slight growth in jobless claims. Inflation is gradually easing, but remains elevated, impacting the Fed's interest rate decisions. The timing and extent of rate cuts remain uncertain.
Private sector hiring slowed slightly in February, adding 140,000 jobs, below expectations but still robust. Leisure and hospitality led growth, followed by construction and trade sectors. ADP's report indicates a strong but cooling job market ahead of the Labor Department's nonfarm payrolls data, which is forecast to show stronger job gains.
Concerned about persistent inflation, Fed Chair Jerome Powell resists cutting interest rates abruptly. However, the Fed plans to start reducing rates later this year, seeking a balance between controlling inflation and sustaining economic growth. Powell's cautious stance aims to avoid prematurely ending the tightening cycle. Despite improvements in inflation, the Fed acknowledges the risks of premature rate cuts.
Layoffs have spiked, surpassing 2009 levels, driven by tech sector cuts. Finance and other industries have also witnessed substantial job losses. Despite the layoffs, unemployment rates remain low due to a favorable job market, with many workers finding new employment quickly. The trend is expected to persist as companies focus on cost reduction and technology adoption, altering staffing requirements.
The US job market expects continued growth in February, with 198,000 new jobs and a 3.7% unemployment rate. While slower than January, it reflects a healthy market. Employers remain cautious about rapid expansion to avoid inflation. Despite layoffs in tech, growth persists in other sectors. Skilled worker shortages continue in healthcare, engineering, and skilled trades. Wage growth is moderating slightly from January's pace.
In February, the US unemployment rate rose slightly to 3.9%, despite a decrease for Black women to 4.4% due to job growth in sectors with high Black female employment. However, Hispanic women saw an increase in unemployment to 5%. Overall, the labor market remains strong, with economists anticipating stability in the coming months.
