For the first part of the year, the focus has been international news, rather than domestic economic reports. Not that we have not had our share of news, including the first meeting of the year for the Federal Reserve Board's Federal Open Market Committee (FOMC). The statement from the committee indicated some of the same emphasis on international news.
This news has included increased economic stimulus in Europe where the
economies continue to struggle. The stronger dollar and low price of oil are
also affecting overseas economies -- as well as our own economy. It is unlikely
that our interest rates would not be so low without the world-wide economies
continuing to languish. The question is, will our economy continue to thrive
through all of this world-wide economic and political turmoil?Thus, January's reading of the jobs situation released on Friday was all-important in this regard. What did the data show? It showed that our economy is continuing to strengthen as the world slows down. More jobs were created than expected, the previous months were revised even higher than originally reported and hourly earnings showed a healthy jump. Even the higher unemployment rate was seen as a positive as this was due to more job seekers entering the market. Any increase in the labor participation rate is viewed as a sign of an increasingly confident consumer.
Mike Ervin
Branch Manager/Mortgage Banker
NMLS: 282715
O: 650.735.5261
C: 650.766.8500
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