ECONOMIC CALENDAR:Monday: Personal Income and Outlays, PMI Manufacturing Index, ISM Mfg Index, Construction Spending Tuesday: Motor Vehicle Sales, Factory Orders Wednesday: ADP Employment Report, ISM Non-Mfg. Index, EIA Petroleum Status Report Thursday: International Trade, Jobless Claims, Productivity and Costs Friday: Employment Situation
Quote of the week:
“Success is walking from failure to failure with no loss of enthusiasm.” – Winston Churchill
- Durable goods fall sharply in December. Orders for long lasting U.S. manufactured goods dropped 3.4% in December after falling 2.1% in November, raising questions about the health of one of the economy’s most important sectors. Though demand for automobiles grew, a core indicator of business investment fell for the fourth straight month.
- Consumer sentiment brightens in January. Optimism about better job and wage prospects sent a measure of U.S. consumer sentiment to its highest level since 2004. Hopefully, increased confidence in the economic expansion will translate into higher consumer spending this quarter.
- Chinese factory growth slides. China’s manufacturing sector unexpectedly shrank in January to the lowest level since 2012. Since factories often experience a bump just before an important spring holiday, the drop could presage further gloom for China’s economy.
- Jobless claims fall to 14-year low. The number of Americans filing new claims for unemployment benefits fell to the lowest level since 2000. Claims had been trending higher in previous reports, so the sudden drop is an indicator that the labor market is returning to its positive trend.