Money Minute Friday 10 January: big news from the US

In today's Money Minute, we look forward to the day's big economic news from the US with the publication of the latest non-farm payrolls and wage inflation data.

Today’s big economic news comes from the US. It’s non-farm payrolls day. That means we get to see how many jobs the US economy added last month. We also get an update on the pace of wage growth, and the overall unemployment rate. In November, payrolls expanded by 226,000 jobs. That was much stronger than expected, and is unlikely to have been repeated in December. Analysts expect a more modest, but still healthy gain, of around 160,000.

Wages are expected to rise by 3.1% year on year, while the unemployment rate is expected to remain at the historically low level of 3.5%. For as long as the employment outlook is healthy, that suggests that US consumers will keep spending. That in turn implies that the US economy will remain in good shape.

As far as markets go, with the Federal Reserve apparently comfortable with keeping interest rates low as long as inflation remains tame, investors would probably react positively to a strong report, and negatively to a weak one.

Recommended

Bitcoin mania: private currencies are nothing new
Bitcoin

Bitcoin mania: private currencies are nothing new

The idea is gaining ground that bitcoin and the plethora of other new currencies are here to stay. But the existence of private currencies operating p…
15 Apr 2021
Too embarrassed to ask: what’s the difference between producer price inflation and consumer price inflation?
Too embarrassed to ask

Too embarrassed to ask: what’s the difference between producer price inflation and consumer price inflation?

Two of the most important indicators for the economy are “producer price inflation” and “consumer price inflation”. But what are they and what do they…
13 Apr 2021
How the Covid-19 vaccine crisis is putting the EU in danger
EU Economy

How the Covid-19 vaccine crisis is putting the EU in danger

The botched coronavirus vaccine campaign will cause long-term harm to the EU's economy, says Matthew Lynn.
4 Apr 2021
What does Joe Biden’s $3trn infrastructure plan mean for your money?
US Economy

What does Joe Biden’s $3trn infrastructure plan mean for your money?

Joe Biden is set to announce a further $3trn of public stimulus in the US. Saloni Sardana looks at what’s on the table, and what effect it could have …
30 Mar 2021

Most Popular

“Joke” cryptocurrency dogecoin goes to the moon. What’s going on?
Bitcoin

“Joke” cryptocurrency dogecoin goes to the moon. What’s going on?

Dogecoin – a cryptocurrency created as a joke – has risen by more than 9,000% this year alone. Saloni Sardana looks at how something that began as an …
19 Apr 2021
The FTSE 100 has clawed back above 7,000 – how much higher can it go?
UK stockmarkets

The FTSE 100 has clawed back above 7,000 – how much higher can it go?

The FTSE 100 index has risen to over 7,000 for the first time in over a year – it now sits just above where it was in 1999. But its era of neglect cou…
19 Apr 2021
The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021