Economic Data

Weekly Market Update for Week Ending in

03/08/2024

Helping you navigate the market

Unemployment Rate Climbs

The other major components of the report also revealed unexpected weakness. The unemployment rate rose to 3.9%, the highest reading since January 2022. This is up from 3.4% in April 2023, which was the lowest level since 1953. Average hourly earnings were 4.3% higher than a year ago, below the consensus forecast. Fed officials carefully monitor wage growth because it generally raises future inflationary pressures.

Another major economic report released this week also fell short of expectations. Since services account for roughly 75% of economic activity in the US, investors closely watch key data on the sector from the Institute of Supply Management. The latest report revealed that the ISM national services index fell to 52.6, below the consensus forecast. Still, readings above 50 indicate an expansion in the sector.

In his semi-annual testimony to Congress, Fed Chair Powell stuck to the same script as in other recent speeches. He continued to emphasize that future decisions on monetary policy would be determined by incoming economic data and that officials would carefully consider the risks of waiting too long to cut rates versus loosening too soon. Most investors now anticipate that the first rate cut will take place in June.

Economic Data for the Week Ahead

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