The nation’s unemployment rate jumped from 4.7% in November to a two-year high of 5% in December, the Labor Department reported January 4. Together private and government employers added just 18,000 new jobs last month, far from the 70,000 new jobs that analysts had predicted. Average hourly earnings for jobholders rose to $17.71 in December, a 0.4% increase from November.
The Institute for Supply Management (ISM) said on January 2 that its index measuring manufacturing activity unexpectedly dropped from 50.8 in November to 47.7 in December. A reading below 50 indicates contraction in the sector.
Meanwhile, the ISM’s companion index measuring service sector activity fell from 54.1 in November to 53.9 in December, in line with analysts’ expectations. A reading above 50 indicates expansion.
Orders to U.S. factories rose by 1.5% in November, the biggest rise since a 3.4% surge in July, the Commerce Department reported January 3. However, orders for durable goods — items expected to last three or more years — fell by 0.1%, the fourth straight monthly decline.
On the home front, existing home sales inched up 0.4% in November from October, the national Association of Realtors reported December 31. Even with the increase, the pace of sales was still the second-lowest on record. The median price of a home sold in December was $210,200, a 3.3% drop from December 2006, the fifth biggest annual decline on record.
Construction spending also nudged up 0.1% in November, the Commerce Department said January 2, a better performance than economists expected. A 2.5% increase in government construction projects led the way.
This week look for updates on the U.S. trade balance on January 11.
Economic data compiled from reports published by msnbc.com, cnn.money.com and Yahoo! economic calendar.