CPI ~ Highlights Inflation is not yet presenting a problem for the Fed to cut back on asset purchases-but the numbers are warm enough to raise the debate. The consumer price index July decelerated to a 0.2 percent rise after surging 0.5 percent the month before. The July figure matched expectations for a 0.2 percent rise. The core CPI-excluding food and energy-posted at 0.2 percent, equaling both the June number and analysts' forecast.
Highlights The employment situation disappointed again on the payroll side. Total payroll jobs in January rose 113,000, following a revised increase of 75,000 for December and after a revised rise of 274,000 for November. Expectations were for a 181,000 boost. The net revisions for November and December were up 34,000. Private payrolls advanced 142,000 after rising 89,000 in December. The consensus called for a 182,000 gain in January.
The unemployment rate slipped to 6.6 percent from 6.7 percent in December. The labor force actually rebounded a sharp 523,000 in January after dropping 347,000 the month before. Household employment spiked 638,000, following a 143,000 rise in December.
Turning back to the payroll portion of the report, goods-producing jobs rebounded 76,000 after dipping 13,000 in December. Construction jobs gained 48,000 in January after decreasing 22,000 the month before. Manufacturing advanced 21,000, following a rise of 8,000 in December.
Private service-providing jobs increased a slower 66,000 in January, following a 102,000 increase in December. Retail trade jobs fell 13,000 after a 63,000 boost in December. On the positive side, professional & business services gained 36,000 after a 4,000 rise in December.
Government jobs fell 29,000 in January after declining 14,000 the month before.
Wage growth posted at 0.2 percent, following no change in December. Analysts projected a 0.2 percent gain. The average workweek was unchanged at 34.4 hours, matching expectations.
Overall, the employment report points to a soft first quarter. However, there is some uncertainty over how much weather weighed on job growth.