- Strong job gains underscored economic momentum
The U.S. employment report for November came at the forefront of the economic agenda last week.
According to the official figures, non-farm sectors created 228 thousand jobs in November, ahead of expectations of 195 thousand. The better than expected job gains underscored the economy’s growing momentum.
Average hourly earnings, which are closely watched by the Federal Reserve in terms of inflation, rose by 0.2 percent in November.
“The slightly bigger than expected 228,000 gain in non-farm payrolls in November all but guarantees another 25 basis points interest rate hike by the Fed next week,” Paul Ashworth, the chief U.S. economist at Capital Economics said in a note.
Other releases showed that the trade deficit reached $48.7 billion in October, its highest level in the last nine months.
Other negative data was on consumer confidence. The University of Michigan Consumer Confidence Index (UMICH) fell to 96.8 in December, the lowest level in three months.
- The government averts shutdown until Dec. 22
The most important political development was the approval of the stopgap budget bill in Congress. On Friday, U.S. President Donald Trump signed the bill that prevented a temporary shutdown of the federal government until Dec. 22
-Week ahead: Fed is expected to raise interest again
This week, all eyes will be on what the Fed will decide at the upcoming FOMC meeting concluding on Wednesday.
Fed Chair Janet Yellen's final FOMC news conference will be held after the meeting, at which many expect another 25 basis points interest rate hike.
Other important economic headlines of the week will be inflation, retail sales, and industrial production data.
In addition, developments on the tax reform will be closely monitored.
