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Tag: Employment figures

  • US economy likely returned to growth last quarter

    US economy likely returned to growth last quarter

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    WASHINGTON — The problems have hardly gone away. Inflation, still near a 40-year high, is punishing households. Rising interest rates have derailed the housing market and threaten to inflict broader damage. And the outlook for the world economy grows bleaker the longer that Russia’s war against Ukraine drags on.

    But for now anyway, the U.S. economy has likely returned to growth after having shrunk in each of the first two quarters of 2022.

    At least that’s what economists expect to see Thursday when the Commerce Department issues its first of three estimates of gross domestic product — the broadest measure of economic output — for the July-September period.

    Economists surveyed by the data firm FactSet have predicted, on average, that GDP grew at a 2% annual rate in the third quarter. That would reverse annual declines of 1.6% from January through March and 0.6% from April through June.

    Consecutive quarters of declining economic output are one informal definition of a recession. But most economists say they believe the economy has so far skirted a recession, noting the still-resilient job market and steady spending by consumers. Most of them have expressed concern, though, that a recession is likely next year as the Federal Reserve continues to steadily ratchet up interest rates to fight inflation.

    Preston Caldwell, head of U.S. economics for the financial services firm Morningstar, notes that the economy’s contraction in the first half of the year was caused largely by factors that don’t reflect its underlying health and so “very likely did not constitute a genuine economic slowdown.” He pointed, for example, to a drop in business inventories, a cyclical event that tends to reverse itself and generally doesn’t reflect the state of the economy.

    By contrast, consumer spending, fueled by a healthy job market, and stronger U.S. exports likely restored the world’s biggest economy to growth last quarter.

    Thursday’s report from the government comes as Americans, worried about high prices and recession risks, are preparing to vote in midterm elections that will determine whether President Joe Biden’s Democratic Party retains control of Congress. Inflation has become a signature issue for Republican attacks on the Democrats’ stewardship of the economy.

    The risk of an economic downturn next year remains elevated as the Fed keeps raising rates aggressively to try to tame stubbornly high consumer prices. The central bank has raised its benchmark short-term rate five times this year, and it’s expected to announce further hikes next week and again in December. Chair Jerome Powell has warned bluntly that taming inflation will “bring some pain’’ — namely, higher unemployment and, possibly, a recession.

    Higher borrowing costs have already hammered the home market. The average rate on a 30-year fixed-rate mortgage, just 3.09% a year ago, is approaching 7%. Sales of existing homes have fallen for eight straight months. Construction of new homes is down nearly 8% from a year ago.

    Still, the economy retains pockets of strength. One is the vitally important job market. Employers have added an average of 420,000 jobs a month this year, putting 2022 on track to be the second-best year for job creation (behind 2021) in Labor Department records going back to 1940. The unemployment rate was 3.5% last month, matching a half-century low.

    But hiring has been decelerating. In September, the economy added 263,000 jobs — solid but the lowest total since April 2021.

    International events are causing further concerns. Russia’s invasion of Ukraine has disrupted trade and raised prices of energy and food, creating a crisis for poor countries. The International Monetary Fund, citing the war, this month downgraded its outlook for the world economy in 2023.

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  • In drawn-out recovery, NYC inches out from COVID’s shadow

    In drawn-out recovery, NYC inches out from COVID’s shadow

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    NEW YORK — As kids returned to school last month, people watching New York City pull itself out of COVID-19’s shadow wondered whether workers who fled Manhattan’s office towers during the pandemic would finally return in a rush, too.

    More workers did return to their offices, at least part time, as the summer ended, limited data suggests. But the onset of autumn has also made it clearer than ever that the recovery will be drawn out, and that some aspects of the city’s economic ecosystem could be changed for good.

    “We’re certainly entered a changed relationship between office workers and their offices,” said James Parrott, director of Economic and Fiscal Policies at the Center for New York City Affairs at The New School.

    That’s meant hardship for New Yorkers who are part of the economy built around the commuting class.

    They are the workers whose livelihoods can’t happen over an internet connection, who have depended on that serendipity of a customer being in the right place at the right time — the sudden impulse to buy a snack, pop into a store, throw some dollars into a street performer’s tip bucket.

    They’re people like Emad Ahmed, 58, who for more than two decades has worked in lower Manhattan, running his food cart on a plaza near Wall Street and the World Trade Center.

    The pandemic forced a pause, but as soon as he was able, Ahmed came back — and really wishes he could say the same for all the workers he relied on as customers, many of them still working at home and coming into Manhattan only a few days a week, at most.

    “The pandemic (is) almost done, nobody uses a mask now, and you can go to the subway and the bus without masks, and people still don’t come,” he said. It’s “absolutely not like before.”

    Some had looked to the Labor Day as a possible catalyst, a transition back to the way things were, and indeed, some data has shown momentum since then, including office occupancy in the metro area getting closer to the halfway mark.

    Subway ridership is on an upswing, as well, with one day last week reaching almost 3.9 million riders. While that’s only about 64% of a comparable day pre-pandemic, the weekday totals have been inching up overall since the holiday.

    A survey of Manhattan companies put out by the Partnership for New York City last month found that on an average day, just under half of Manhattan office workers were in their offices as of the beginning of September.

    But when it comes to being back in the office full time, only 9% of workers were, with the largest group, 37%, in for three days a week. Sixteen percent of workers were still completely remote.

    Looking ahead through the rest of the year to the beginning of 2023, the survey didn’t show those numbers changing drastically, despite city government and corporate leaders urging workers to come back.

    “People have gotten used to the flexibility and the benefits of not having to commute to the office every day,” said Kathryn Wilde, president and CEO of the partnership. “They’re going to have to have good reasons to go back.”

    Remote work has brought an upswing in jobs and liveliness to some neighborhoods in the outer boroughs, as people staying close to home have brought their coffee and other daily needs to their local outlets.

    But that hasn’t made up for what’s been lost, said Jonathan Bowles, executive director of the Center for an Urban Future, a public policy think tank.

    “In some ways, it’s almost miraculous how much the city’s economy has recovered since the depths of March 2020,” Bowles said.

    New York City lost more than 970,000 jobs when the pandemic hit; as of August, just about 810,000 had come back, about 84%.

    “But there are still really large pockets, particularly around the central business districts where entrepreneurs and small businesses are struggling left and right … seeing a fraction of their previous customers,” Bowles said.

    Ahmed is among them. On his best days, midweek, he sees maybe 60% of what he would have before the pandemic. On the worst, even getting to 10-15% can be a challenge.

    For some dependent on office life, the partial return has been enough. Denis Johnston, executive vice president of 32BJ Service Employees International Union, said almost all of the commercial office space cleaners represented by the union are back at work.

    Whether companies have some or all of their employees back on a given day, the spaces need to be cleaned and maintained, so his members are needed, he said.

    Some, like taxi driver Sukhdarshan Singh, have learned to adjust. While there are fewer commuters, he’s finding fares at other times.

    “Office people are not back, but evenings and weekends, people are out,” said Singh, a cabbie for about 35 years.

    But other sectors are suffering. Among retail outlets, food and beverage stores have seen only about 66% of jobs come back, while clothing stores have seen about 62%, according to the New York City Independent Budget Office.

    If office workers are “not in the city, they’re not shopping in the city,” said Stuart Appelbaum, president of the Retail, Wholesale and Department Store Union.

    “Stores are operating with fewer people because there are fewer customers,” he said.

    The city’s unemployment rate was 6.6% in August, significantly higher than the national rate of 3.7%.

    Office workers being slow to go back is “absolutely going to impact the bottom line for tons of … vendors, people that operate food trucks and so many more businesses that are really dependent on office workers providing a big chunk of their sales,” Bowles said.

    “There are just going to be fewer of those chance encounters, where people pick up something to eat or drink or to bring home during their lunch hour, on their way to work and on the way home,” Bowles said. “And that’s a surprisingly huge part of the Manhattan economy.”

    Ahmed worries about his own future, especially as winter approaches. Even prior to the pandemic, the cold weather was slow for business, and now he worries it will be a financial deep freeze.

    He just holds out hope that the city streets will come back to the life they had before.

    “Nothing else can help me,” he said. “Without people? That’s it.”

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  • In drawn-out recovery, NYC inches out from COVID’s shadow

    In drawn-out recovery, NYC inches out from COVID’s shadow

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    NEW YORK — As kids returned to school last month, people watching New York City pull itself out of COVID-19’s shadow wondered whether workers who fled Manhattan’s office towers during the pandemic would finally return in a rush, too.

    More workers did return to their offices, at least part time, as the summer ended, limited data suggests. But the onset of autumn has also made it clearer than ever that the recovery will be drawn out, and that some aspects of the city’s economic ecosystem could be changed for good.

    “We’re certainly entered a changed relationship between office workers and their offices,” said James Parrott, director of Economic and Fiscal Policies at the Center for New York City Affairs at The New School.

    That’s meant hardship for New Yorkers who are part of the economy built around the commuting class.

    They are the workers whose livelihoods can’t happen over an internet connection, who have depended on that serendipity of a customer being in the right place at the right time — the sudden impulse to buy a snack, pop into a store, throw some dollars into a street performer’s tip bucket.

    They’re people like Emad Ahmed, 58, who for more than two decades has worked in lower Manhattan, running his food cart on a plaza near Wall Street and the World Trade Center.

    The pandemic forced a pause, but as soon as he was able, Ahmed came back — and really wishes he could say the same for all the workers he relied on as customers, many of them still working at home and coming into Manhattan only a few days a week, at most.

    “The pandemic (is) almost done, nobody uses a mask now, and you can go to the subway and the bus without masks, and people still don’t come,” he said. It’s “absolutely not like before.”

    Some had looked to the Labor Day as a possible catalyst, a transition back to the way things were, and indeed, some data has shown momentum since then, including office occupancy in the metro area getting closer to the halfway mark.

    Subway ridership is on an upswing, as well, with one day last week reaching almost 3.9 million riders. While that’s only about 64% of a comparable day pre-pandemic, the weekday totals have been inching up overall since the holiday.

    A survey of Manhattan companies put out by the Partnership for New York City last month found that on an average day, just under half of Manhattan office workers were in their offices as of the beginning of September.

    But when it comes to being back in the office full time, only 9% of workers were, with the largest group, 37%, in for three days a week. Sixteen percent of workers were still completely remote.

    Looking ahead through the rest of the year to the beginning of 2023, the survey didn’t show those numbers changing drastically, despite city government and corporate leaders urging workers to come back.

    “People have gotten used to the flexibility and the benefits of not having to commute to the office every day,” said Kathryn Wilde, president and CEO of the partnership. “They’re going to have to have good reasons to go back.”

    Remote work has brought an upswing in jobs and liveliness to some neighborhoods in the outer boroughs, as people staying close to home have brought their coffee and other daily needs to their local outlets.

    But that hasn’t made up for what’s been lost, said Jonathan Bowles, executive director of the Center for an Urban Future, a public policy think tank.

    “In some ways, it’s almost miraculous how much the city’s economy has recovered since the depths of March 2020,” Bowles said.

    New York City lost more than 970,000 jobs when the pandemic hit; as of August, just about 810,000 had come back, about 84%.

    “But there are still really large pockets, particularly around the central business districts where entrepreneurs and small businesses are struggling left and right … seeing a fraction of their previous customers,” Bowles said.

    Ahmed is among them. On his best days, midweek, he sees maybe 60% of what he would have before the pandemic. On the worst, even getting to 10-15% can be a challenge.

    For some dependent on office life, the partial return has been enough. Denis Johnston, executive vice president of 32BJ Service Employees International Union, said almost all of the commercial office space cleaners represented by the union are back at work.

    Whether companies have some or all of their employees back on a given day, the spaces need to be cleaned and maintained, so his members are needed, he said.

    Some, like taxi driver Sukhdarshan Singh, have learned to adjust. While there are fewer commuters, he’s finding fares at other times.

    “Office people are not back, but evenings and weekends, people are out,” said Singh, a cabbie for about 35 years.

    But other sectors are suffering. Among retail outlets, food and beverage stores have seen only about 66% of jobs come back, while clothing stores have seen about 62%, according to the New York City Independent Budget Office.

    If office workers are “not in the city, they’re not shopping in the city,” said Stuart Appelbaum, president of the Retail, Wholesale and Department Store Union.

    “Stores are operating with fewer people because there are fewer customers,” he said.

    The city’s unemployment rate was 6.6% in August, significantly higher than the national rate of 3.7%.

    Office workers being slow to go back is “absolutely going to impact the bottom line for tons of … vendors, people that operate food trucks and so many more businesses that are really dependent on office workers providing a big chunk of their sales,” Bowles said.

    “There are just going to be fewer of those chance encounters, where people pick up something to eat or drink or to bring home during their lunch hour, on their way to work and on the way home,” Bowles said. “And that’s a surprisingly huge part of the Manhattan economy.”

    Ahmed worries about his own future, especially as winter approaches. Even prior to the pandemic, the cold weather was slow for business, and now he worries it will be a financial deep freeze.

    He just holds out hope that the city streets will come back to the life they had before.

    “Nothing else can help me,” he said. “Without people? That’s it.”

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  • Asian shares extend losses as specter of recession looms

    Asian shares extend losses as specter of recession looms

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    BANGKOK — Asian shares slipped on Monday, with Chinese markets logging moderate losses after they reopened from a weeklong holiday.

    The declines followed yet another dismal end to the week on Wall Street as a strong U.S. jobs report added to worries the Federal Reserve might consider the higher-than-expected hiring data as proof the economy hasn’t slowed enough to get inflation under control. That might mean still more hefty rate hikes that could make a recession more likely.

    A U.S. consumer prices report on Thursday will be one of the biggest factors for markets this week. Investors also are awaiting the latest updates on how companies are dealing with higher prices and interest rate hikes.

    Markets were closed Monday in Tokyo, Taiwan and South Korea. The Hang Seng in Hong Kong fell 2.5% to 17,298.32 while the Shanghai Composite index shed 0.4% to 3,012.58. Bangkok’s SET lost 0.6% and India’s Sensex gave up 1.2%.

    The dollar rose to 145.44 Japanese yen from 145.34 late Friday, adding to pressure on Japan’s central bank to counter the yen’s prolonged slide by adjusting its policy of keeping its benchmark interest rate below zero to fend off deflation.

    Prices have been rising in Japan, pushed higher mainly by global inflation and surging costs for oil and gas, but the Bank of Japan has stuck to its ultra-loose monetary policy while the Fed has pressed ahead with sharp rate hikes. The higher expected returns have pushed the dollar higher against the yen.

    On Friday, the S&P 500 fell 2.8% to 3,639.66. It ended with a 1.5% gain for the week, its first weekly gain in four weeks. The Dow Jones Industrial Average skidded 2.1% to 29,296.79. The Nasdaq tumbled 3.8% to 10,652.40. The Russell 2000 index fell 2.9%, to 1,702.15.

    The government report showing employers hired more workers last month than economists expected might clear the way for the Fed to continue hiking interest rates aggressively, something that risks causing a recession if done too severely.

    Employers added 263,000 jobs last month. That’s a slowdown from the hiring pace of 315,000 in July, but it’s still more than the 250,000 that economists expected.

    Stocks have tumbled over 20% this year from record highs this year on worries about inflation, interest rates and the possibility of a recession.

    The major indexes managed to notch a gain for the week, thanks to a powerful but short-lived rally Monday and Tuesday after some investors squinted hard enough at some weaker-than-expected economic data to suggest the Fed may take it easier on rate hikes. But Friday’s jobs report may have dashed such hopes for a “pivot” by the Fed. It’s a pattern that has been repeated several times this year.

    By hiking interest rates, the Fed is hoping to starve inflation of the purchases needed to keep prices rising even further. The Fed has already seen some effects, with higher mortgage rates hurting the housing industry in particular. But if the rate hikes go too far, that could squeeze the economy into a recession. In the

    Crude oil, meanwhile, had its biggest weekly gain since March. Benchmark U.S. crude jumped 4.7% to settle at $92.64 per barrel Friday. Brent crude, the international standard, rose 3.7% to settle at $97.92.

    Oil prices have surged because big oil-producing countries have pledged to cut production in order to keep prices up. That should keep the pressure up on inflation, which is still near a four-decade high but hopefully moderating.

    On Monday, the U.S. benchmark fell 97 cents to $91.67 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude gave up $1.02 to $96.90 a barrel.

    Beyond higher interest rates, analysts say the next hammer to hit stocks could be a potential drop in corporate profits. Companies are contending with high inflation and interest rates eating into their earnings, while the economy slows.

    The euro was unchanged at 97.36 U.S. cents.

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  • Hong Kong shares soar 6%, leading Asian market gains

    Hong Kong shares soar 6%, leading Asian market gains

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    TOKYO — Hong Kong’s share benchmark soared more than 6% on Wednesday as Asian shares tracked gains on Wall Street.

    New Zealand’s share benchmark rose 0.8% after its central bank hiked its benchmark interest rate to 3.5%, saying inflation remained too high and labor scarce. The half-point rate hike was the fifth in a row made by the Reserve Bank of New Zealand since February.

    Statistics New Zealand said inflation was running at 7.3% and unemployment at 3.3%. The rate hike came on the same day the government announced its finances were in better shape than forecast.

    The Hang Seng in Hong Kong rose 6.0% to 18,108.69, catching up with gains elsewhere as markets reopened following a holiday Tuesday. Markets in mainland China remained closed for a holiday.

    Japan’s benchmark Nikkei 225 added 0.5% to 27,138.99. Australia’s S&P/ASX 200 climbed 1.7% to 6,815.70. Shares in Australia got a boost after the Reserve Bank of Australia ordered a smaller-than-expected 25 basis points interest rate hike on Tuesday.

    South Korea’s Kospi gained 0.4% to 2,217.88.

    Analysts said the latest data on South Korea’s inflation may push the Bank of Korea to raise interest rates at its meeting set for next week, but such hikes were expected to slow in pace as inflation is brought under control.

    “We expect headline inflation to rise again in October. Gasoline prices will likely decline further, but city gas and power rates were raised at the beginning of October and fresh food prices will also probably rise ahead of winter,” said a report by Robert Carnell, regional head of research Asia-Pacific at ING.

    On Wall Street, the Dow Jones Industrial Average climbed more 2.8% to 30,316.32. The S&P 500 had its best day since May 2020 on Tuesday as the market clawed back more of the ground it lost over the past miserable several weeks. It surged 3.1% to 3,790.93.

    Twitter surged 22.2% after Elon Musk said he would go ahead with his $44 billion acquisition of the social media company, abandoning efforts to get out of the deal.

    The Nasdaq composite climbed 3.3% to 11,176.41. Small company stocks also made solid gains, lifting the Russell 2000 advanced 3.9% to 1,775.77.

    The two-day rally has hit markets as investors look for signs that central banks might ease up on aggressive rate hikes aimed at taming the hottest inflation in four decades. The rate hike by Australia’s central bank was smaller than previous ones.

    In the U.S., a government report on job openings showed the number of available jobs in the U.S. plummeted in August compared with July. It’s a sign that businesses may pull back further on hiring and potentially cool chronically high inflation, which could allow the Federal Reserve to slow the pace of rate increases.

    Investors are watching closely as central banks raise interest rates to make borrowing more difficult and slow economic growth to try to tame inflation. Investors are hoping that they will eventually ease off their aggressive rate hikes and the move by Australia’s central bank is a hopeful sign for some.

    Investors worry that the rate hikes, especially the increases from the Fed, could go too far in slowing growth and send economies into a recession. The Fed has already pushed its key overnight interest rate to a range of 3% to 3.25%, up from virtually zero as recently as March.

    Economic growth is already slowing globally and the U.S. economy contracted during the first two quarters of the year, which is considered an informal signal of a recession.

    Wall Street will get a more detailed look at the employment situation in the U.S. this week, with a report on hiring by private companies due out Wednesday, the latest tally of weekly applications for unemployment benefits on Thursday and the government’s monthly jobs report for September on Friday.

    In energy trading, benchmark U.S. crude fell 16 cents to $86.39 a barrel in electronic trading on the New York Mercantile Exchange. It surged $2.89 to 86.52 on Tuesday. Brent crude, the international standard for pricing, lost 8 cents to $91.72 a barrel.

    In currency trading, the U.S. dollar rose to 144.19 from 144.12 Japanese yen. The euro cost 99.69 cents, down from 99.87 cents.

    ———

    Damian J. Troise, Alex Veiga and Nick Perry contributed to this report.

    Yuri Kageyama is on Twitter https://twitter.com/yurikageyama

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  • US job openings sink amid higher rates and slower growth

    US job openings sink amid higher rates and slower growth

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    WASHINGTON — The number of available jobs in the U.S. plummeted in August compared with July, a sign that businesses may pull back further on hiring and potentially cool chronically high inflation.

    There were 10.1 million advertised jobs on the last day of August, the government said Tuesday, down a huge 10% from 11.2 million openings in July. In March, job openings had hit a record of nearly 11.9 million.

    Layoffs ticked up in August but remained at a historically low level. And slightly more people quit their jobs.

    The sharp drop in job openings will be welcomed by the Federal Reserve. Fed officials have cited the high level of openings as a sign of strong labor demand that has compelled employers to steadily raise pay to attract and keep workers.

    Smaller pay raises, if sustained, should ease inflationary pressures. In their effort to combat the worst inflation in 40 years, the central bank has raised its key short-term interest rate to a range of 3% to 3.25%, up sharply from nearly zero as recently as March.

    Chair Jerome Powell and other Fed officials hope that their interest rate hikes — the fastest in roughly four decades — will cause employers to pull back on their efforts to hire more people. Fewer job openings, in turn, could reduce the pressure on companies to raise pay to attract and keep workers.

    Tuesday’s figures arrive the same week that a key report on jobs and the unemployment rate is set to be released Friday. Economists forecast that it will show that employers added 250,000 jobs in September and that the unemployment rate remained 3.7% for a second straight month.

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  • Asian shares rise after ‘relief rally’ on Wall Street

    Asian shares rise after ‘relief rally’ on Wall Street

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    TOKYO — Asian shares rose Tuesday, encouraged by a rally in U.S. shares after some weak economic data raised hopes that the Federal Reserve might ease away from aggressive interest rate hikes.

    Japan’s benchmark Nikkei 225 added 2.8% in afternoon trading to 26,959.25. South Korea’s Kospi gained 2.5% to 2,209.98.

    Australia’s S&P/ASX 200 jumped 3.8% to 6,699.30 after its central bank boosted its benchmark interest rate for a sixth consecutive month to a nine-year high of 2.6%. The Reserve Bank of Australia’s increase of a quarter percentage point to the cash rate was smaller than those at recent monthly meetings.

    When the bank lifted the rate by a quarter percentage point at its board meeting in May, it was the first rate hike in more than 11 years. It’s now at its highest point since August 2013, when the bank cut the rate from 2.75% to 2.5%.

    Markets in Hong Kong and Shanghai were closed for holidays.

    “Asian equities were positive on Tuesday after a corrective session as traders eye potentially oversold market conditions,” Anderson Alves at ActivTrades said in a report.

    On Monday, Wall Street soared to its best day in months in a widespread relief rally after some unexpectedly weak data on the economy raised the possibility that the Federal Reserve won’t have to be so aggressive about hiking interest rates.

    The S&P 500’s leap of 2.6% to 3,678.43 was its biggest since July, the latest swing for a scattershot market that’s been mostly falling this year on worries about a possible global recession.

    The Dow Jones Industrial Average jumped 2.7%, to 29,490.89, and the Nasdaq composite gained 2.3% to 10,815.43.

    Stocks took their cue from the bond market, where yields fell to ease some of the pressure that’s been battering markets this year. The yield on the 10-year Treasury, which helps set rates for mortgages and many other kinds of loans, fell to 3.62% from 3.83% late Friday. It got as high as 4% last week after starting the year at just 1.51%.

    A report on U.S. manufacturing came in weaker than expected, along with data showing a drop off in construction spending from July to August. That may seem discouraging, but could mean the Federal Reserve can ease off on raising interest rates to beat down the high inflation damaging households’ finances.

    By raising rates, the Fed is making it more expensive to buy a house, a car or most anything else purchased on credit. The hope is to slow the economy just enough to starve inflation of the purchases needed to keep prices rising so quickly.

    The Fed has already pulled its key overnight interest rate to a range of 3% to 3.25%, up from virtually zero as recently as March. Most traders expect it to be more than a full percentage point higher by early next year.

    But stresses are building in financial markets and corporate profits have weakened as central banks around the world hike rates in concert.

    The yield on the two-year Treasury, which more closely tracks expectations for Fed action, fell to 4.11% from 4.27% following the weaker-than-expected reports on the economy.

    Besides stocks, lower rates also boost prices for everything from cryptocurrencies to gold, which can suddenly look a bit more attractive when bonds are paying less in income.

    Stocks of high-growth companies and particularly risky or expensive investments have been the most affected by changes in rates. Bitcoin rallied Monday with the reprieve in yields, while technology stocks did the heaviest lifting to carry the S&P 500. Apple and Microsoft both rose more than 3%.

    Monday’s rally came despite an 8.6% drop for Tesla, one of the most influential stocks on Wall Street because of its massive market value. The maker of electric vehicles delivered fewer vehicles from July through September than investors expected.

    The latest update on the U.S. jobs market comes on Friday. Along with reports on inflation, the jobs report is one of the most highly anticipated pieces of data on Wall Street each month.

    It will be the last jobs report before the Fed makes its next decision on interest rates, scheduled for Nov. 2. Continued strength would give the central bank more leeway to keep hiking. Traders say the likeliest move is a fourth straight increase of a whopping three-quarters of a percentage point, triple the usual move.

    In energy trading, benchmark U.S. crude added 23 cents to $83.86 a barrel. It jumped Monday amid speculation big oil-producing countries could soon announce cuts to production. Shares of energy-producing companies made big gains. Exxon Mobil leaped 5.3%, and Chevron climbed 5.6%. Brent crude, the international standard, added 42 cents to $89.28 a barrel.

    In currency trading, the U.S. dollar inched up to 144.84 Japanese yen from 144.81 yen. The euro cost 98.28 cents, inching down from 98.40 cents.

    ———

    Yuri Kageyama is on Twitter https://twitter.com/yurikageyama

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  • Fewer people seek US unemployment aid amid solid hiring

    Fewer people seek US unemployment aid amid solid hiring

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    WASHINGTON — The number of Americans filing for jobless benefits dropped last week, a sign that few companies are cutting jobs despite high inflation and a weak economy.

    Applications for unemployment benefits for the week ending Sept. 24 fell by 16,000 to 193,000, the Labor Department reported Thursday. That is the lowest level of unemployment claims since April. Last week’s number was revised down by 4,000 to 209,000.

    Jobless aid applications generally reflect layoffs. The current figures are very low historically and suggest Americans are benefiting from an unusually high level of job security. A year ago this week, 376,000 people applied for benefits.

    The economy shrank in the first half of the year, the government said in a separate report Thursday on gross domestic product, the broadest measure of the economy’s output.

    Yet employers, who have struggled to rehire after laying off 22 million workers at the height of the pandemic, are still looking to fill millions of open jobs. There are currently roughly two open positions for every unemployed worker, near a record high.

    With companies desperate for workers, they are much more likely to hold onto their current staff.

    Employers are also offering higher pay and benefits to attract and keep employees. Those higher salaries are contributing to inflation pressures.

    The Federal Reserve is aiming to bring down inflation by rapidly raising its key interest rate, which is currently in a range of 3% to 3.25%. A little more than six months ago, that rate was near zero. The sharp rate hikes have pushed up mortgage rates and other borrowing costs. The Fed hopes that higher interest rates will slow borrowing and spending and drive inflation down towards its 2% target.

    Fed officials are increasingly warning that the unemployment rate will likely have to rise as part of their fight against rising prices. If the number of unemployment claims drops, as it did last week, it suggests the Fed may have to raise rates even higher than it plans to slow the economy.

    ———

    This has been corrected to show that the level of unemployment benefits applications is the lowest since April, rather than May.

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