Economic Update

[Adam in CO]

Last Week in the News Employers boosted payrolls by a hefty 167,000 workers in December, 50,000 more jobs than analysts had forecast. With the hiring surge, the unemployment rate remained at a historically low 4.5%, the Labor Department said January 5.
The U.S. manufacturing sector rebounded in December, according to the Institute for Supply Management (ISM) index, which rose from 49.5 in November to 51.4 in December. An ISM reading below 50 indicates contraction, while above 50 signals expansion.
Orders to U.S. factories for manufactured goods edged up 0.9% in November, less than the 1.4% analysts had expected, the Commerce Department reported January 4. Declining demand for autos, machinery and steel was blamed for the tepid performance.
Same-store sales at the nation's retailers in the critical November-December holiday period gained 2.8% over the same span in 2005, the International Council of Shopping Centers said January 4. Same-store sales measure the performance of retailers at stores open at least one year. The gain was consistent with analysts' expectations.
Overall construction activity dipped 0.2% in November, following declines of 0.3% in October and 0.8% in September, the Commerce Department said January 3. A 1.6% drop in home construction led the decline, as builders struggled to reduce their large backlog of unsold homes.
For the first week of 2007, interest rates on 30-year mortgages remained unchanged, after three consecutive increases closed out 2006, Freddie Mac reported January 4.
This week, look for updates on the trade deficit on January 10.