by Player896
Morning economic data:
- November retail sales (m/m) -0.6% vs -0.2% expected; October retail sales were +1.3% m/m
- Empire Fed manufacturing survey -11.2 vs -1.0 expected
- Philly Fed manufacturing survey -13.8 vs -12.0 expected
- Weekly jobless claims down 20k from last week; 211k vs 234k expected
- November US industrial production -0.2% vs +0.1% expected
Manufacturing activity and retail sales are spiraling lower, however jobless claims actually fell on a week over week basis. These data points are supportive of a wage-cost spiral.
For those who are unfamiliar with what a wage-cost spiral is:
- High prices push workers to demand higher wages
- Higher wages impose higher costs on businesses who are forced to raise prices in an attempt to offset those costs
- High prices push workers to demand higher wages…
- And on and on…