Yes the unemployment number is at 9.7% and we still lost 200,000 jobs this month but there was some good news. The average hourly earnings was up.3 and up 2.6% YOY. If earnings are up, there is the potential for future spending and improvement of consumer balance sheets. This is no consolation for the unemployed but it is a brightening spot. The earnings decline is still in place, we were at 3.9 YOY at the end of the year but the monthly numbers are looking better. These numbers are consistent with the good productivity numbers. Firms are cutting back workers but having them earn more and work harder.
A recovery is taking hold. What type is less clear. Firms have been slashing inventories and workers to get lean. It would seem that they believe a "new normal" theory and want to cut costs as fast as possible. No we wait for the demand.
A recovery is taking hold. What type is less clear. Firms have been slashing inventories and workers to get lean. It would seem that they believe a "new normal" theory and want to cut costs as fast as possible. No we wait for the demand.
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