SOME HINTS THAT THE JOB MARKET IS BOOMING AND INFLATION IS MODERATING
Obviously this is a dangerous thing to say, but the recent data has some good signs on both the labor market and inflation and it might explain what we’re seeing in the market right now
Labor market:
— ADP was strong.
— Initial claims remaining very low
— ISM Labor component accelerating
— Paychex survey ending the year on a high noteMeanwhile, compare the anecdotal responses in the ISM Manufacturing report in December (left) vs. November (right).
The message still seems to be: things are very tight, but improving marginally.
Originally tweeted by Joe Weisenthal (@TheStalwart) on January 5, 2022.
His comments track with what Krugman wrote yesterday.
We need to hope that this winter of discontent lifts quickly in the spring so that the Democratic party can come off the defensive and go after the Republicans for doubling down on their anti-democratic extremism in the wake of January 6th. For instance hey need to warn people about this:
They need to run against GOP extremism and if the economy is rolling and the pandemic feels like it’s in the rearview mirror they have a much better chance of doing that.
That’s assuming they will bother. I’m hopeful that they will.