Review of unemployment claims for the month of December points to a slowing U.S. economy as claims rose on average compared with November. The rise in benefit claimants is against a backdrop of declining labour participation which dropped to 62.7% last month from 62.8% in October. Signs of a weakening U.S. economy will put pressure on the Federal Reserve, as the plan to move forward with a series a rate hikes this year may need to be revised.
Investor Notes: Non-Farm Payroll, 1330 GMT.
- The Non-Farm Payroll report for December is expected to show a rise of 175,000, representing a marginal slowdown from November.
- The Unemployment rate is set to rise to 4.7% for December, compared with a previous reading of 4.6%.
- Unemployment claims rose in December to an average of 264,000 claims per week compared with the November average of 251,300.
- Average Hourly Earnings are expected to rise by 0.3%, after contracting by 0.1% in November.