Initial jobless claims fell by 1,000 to 209,000, while continuing claims declined by 38,000 to 1.827 million, though they have remained elevated for much of the past year. Some workers appear to be opting for gig or contract roles instead of filing for unemployment, while others are facing longer job searches.
December’s Producer Price Index showed wholesale inflation rising 0.5% month over month and 3.0% year over year. Core producer prices, which exclude food and energy, increased 0.7% for the month and 3.3% from a year earlier. While the data came in hotter than expected, price pressures were relatively narrow, with much of the increase concentrated in machinery and equipment wholesaling margins.