January Regional Manufacturing Readings Show Mixed Results

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Meanwhile, here are the major headlines from the last week:

• Manufacturing activity in various regions of the United States has been uneven so far this month. According to the Federal Reserve Bank of New York, manufacturing activity abruptly leveled off in its region in January. The headline general business conditions index fell 33 points to -0.7. Despite the rapid decline new orders were down only slightly while shipments held steady. Delivery times continued to lengthen and unfilled orders increased. Labor market indicators pointed to a moderate increase in employment and a longer average workweek. In contrast, the Federal Reserve Bank of Philadelphia said manufacturing activity in its region continued to grow in January. The survey’s indicators for general activity, shipments, and new orders all increased modestly this month after falling sharply in December. The employment index also remained in positive territory. Read that report here.
• The Conference Board Leading Economic Index, a key gauge of future U.S. economic growth, increased by 0.8 percent in December to 120.8 following a 0.7 percent increase in November and a 0.7 percent increase in October. Read the full report here.
• The U.S. Department of Labor reported that 286,000 individuals filed for federal unemployment benefits during the week that ended January 15, an increase of 55,000 from the previous week’s level. The four-week moving average of first-time claims also rose. The number of individuals who continued to receive benefits increased to 1.635 million during the week that ended January 8 from 1.551 million the week before. The four-week moving average of continuing claims fell, however, dropping to its lowest level since late April 2019.
• In 2021, U.S. existing-home sales totaled 6.12 million, an increase of 8.5 percent from the prior year and the highest annual level since 2006. Sales are expected to soften in the coming months due to rising interest rates. Read the full report here.
• In other economic news: Construction of new residences in the United States increased 1.4 percent between November 2021 and December 2021 and 2.5 percent between December 2020 and December 2021; wholesale sales in Canada increased 3.5 percent in November; Canadian retail sales increased 0.7 percent; and Canada’s consumer price index hit a 30-year high in December 2021 after rising 4.8 percent year-over-year.