MetroIntelligence Economic Update by P. DUFFY
December service sector index pulls back 7.1 points to 62 percent
In December, the Services PMI® registered 62 percent, 7.1 percentage points below November’s all-time high reading of 69.1 percent. Business Survey Committee respondents have indicated that they continue to struggle with inflation, supply chain disruptions, capacity constraints, logistical challenges and shortages of labor and materials.
Initial claims edge up 7,000 TO 207,000 but still near historic lows
In the week ending January 1, initial unemployment claims were 207,000, an increase of 7,000 from the previous week’s revised level. Continued claims during the week ending December 25 were 1,754,000, an increase of 36,000 from the previous week’s revised level. The total number of continued weeks claimed for benefits in all programs for the week ending December 18 was 1,722,352, a decrease of 199,869 from the previous week. There were 20,155,922 weekly claims filed for benefits in all programs in the comparable week in 2020.
Federal Reserve meeting minutes shows plans to remove accommodative support starting in March
Meeting minutes released from the Fed’s December meeting outlined their plans to remove accommodative support of financial markets in 2022, in three steps: End the asset purchase program, raise the federal funds rate and begin reducing the size of the balance sheet. The first step will start in March (earlier than previously planned), with the next two steps not that far behind.