Employment
Total nonfarm payrolls rose 120,000 in November after increasing by an upwardly revised 100,000 in October (originally reported as 80,000). September’s data was revised higher as well, to 210,000, from 158,000 (total revisions pushed total payrolls up by 72,000 over the previous two months.) Total private jobs increased by 140,000 in November. The unemployment rate unexpectedly declined to 8.6% as the participation rate dropped. Average weekly hours worked were unchanged in November, and average hourly earnings for all employees fell $0.02. to $23.18. Despite the positive improvement in the unemployment rate, the slow pace of job growth indicates that the unemployment rate is likely to rise in the near term.

ISM Manufacturing Index
In November, the Institute for Supply Management’s manufacturing index rose 1.9 points to 52.7 from a reading of 50.8 in October. Although the index remains below its recent highs, it has remained above the critical threshold of 50, which is the indicator for an expanding economy. Among the components, new orders, production, and inventories increased while, employment, supplier deliveries, and imports were weaker.  As the economy gradually improves, we expect business confidence to continue to improve.

New Home Sales
New home sales rose 1.3% in October to a seasonally adjusted annual rate of 307,000 from 303,000 in September. Over the year sales are up 8.9%. The inventory of unsold homes was unchanged in October at 162,000 units. At the current sales rate the months’ supply is 6.3, down 0.1 from September. Median home prices dropped 0.5% in October to $212,300, from $213,300 in September. Over the year prices are up 4.0%. We continue to see mixed data in the housing market. Again we have seen sales rise but prices fall and we do not expect much improvement over the next year.