Weak US Third-Quarter Unit Labour Costs Point To Slowing Inflation  

• The latest Labour Department report indicates a moderate rise in Americans filing new claims for unemployment benefits, suggesting a gradual loss of momentum in the labour market, possibly influenced by higher borrowing costs dampening demand in the broader economy.
• Despite the increase in new claims, the report also reveals a decline in unemployment rolls in late November after reaching a two-year high earlier in the month. The continuing claims dropped, indicating a nuanced picture of the job market.
• Data, influenced by holiday-related volatility, rose slightly to 220,000 below economist forecasts. However, unadjusted claims increased significantly, with notable surges in California, New York, Texas, and other states, contributing to the overall complexity of the data.
• Economic reports show a mixed picture, with a rise in job cuts but a significant drop compared to the previous year. Slowing economic activity, declining wholesale inventories, and a lower ratio of job openings to unemployed individuals contribute to an uncertain economic outlook.
• Despite these challenges, the stock market is trading higher, and most economists are not predicting a recession, anticipating a potential rate cut by early 2024. The upcoming employment report is eagerly awaited, with expectations of a modest increase in nonfarm payrolls in November.

(Source: Reuters)