US Economy Shows Strength Heading into the New Year

US Jobless Claims Drop

US jobless claims fell to 198,000 last week, down from 207,000 the previous week. This marks the lowest level since May 1969, indicating a tight labor market and robust economic conditions.

Consumer Confidence Rises

The Conference Board’s Consumer Confidence Index increased to 128.9 in December, up from 126.6 in November. This surge suggests optimism among consumers regarding the economy and their financial situations.

Retail Sales Show Growth

Retail sales rose by 0.6% in November, surpassing expectations. This growth reflects strong consumer spending during the holiday season, despite ongoing supply chain challenges.

Inflation Remains Elevated

The latest report shows inflation holding steady at 6.8% year-over-year, the highest rate in nearly four decades. Rising prices for food and energy continue to strain household budgets.

Stock Market Outlook Mixed

As Friday approaches, market analysts predict a mixed opening for stocks. Investors are weighing positive economic data against concerns of inflation and potential interest rate hikes by the Federal Reserve.