MH Daily Bulletin: December 2

December 2, 2022 • Posted in Daily Bulletin

News relevant to the plastics industry:

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Domestic Markets

  • The U.S. reported 116,258 new COVID-19 infections and 611 virus fatalities Thursday.
  • The U.S. added a greater-than-expected 263,000 jobs in November, leaving the unemployment rate at a low 3.7% and causing concern the Federal Reserve will extend its historic pace of interest rate increases.
  • First-time jobless claims fell by 16,000 to a total of 225,000 last week, indicating continuing strength in labor markets. Recurring applications, meanwhile, hit their highest level since February, suggesting out-of-work Americans are having more trouble finding jobs.
  • U.S. consumer spending rose 0.8% in September, higher than initially thought on a surge of new-vehicle sales
United States Personal Spending
  • Prices of U.S. services excluding housing and energy — a key indicator of future inflation — rose just 0.3% in October, the smallest increase in months.
  • Traders see an 89% chance of the Federal Reserve raising its benchmark rate by just 50 basis points in December, down from the multiple 75-point hikes imposed this year.
  • The Institute of Supply Management’s manufacturing index fell below 50 in November, indicating manufacturing activity shrank for the first month in 2.5 years.
United States ISM Purchasing Managers Index (PMI)
  • At the same time, a measure of input prices paid by factories fell for a second month, supporting views that inflation is cooling.
  • Americans are saving at the lowest rate since 2005, underscoring the impact of inflation on personal finances.
  • U.S. banks saw third-quarter profit rise 3.2% to a total of $71.7 billion from a year earlier, according to the Federal Deposit Insurance Corporation.
  • U.S. construction spending fell in October, pulled down by weakness in single-family homebuilding, new data shows.
United States Construction Spending

International Markets

Protests Against Zero Covid Policy Spread in China
  • Chinese cities are running out of funding to support mass testing and quarantine enforcement under the nation’s zero-Covid policy. 
  • New data suggests China’s COVID-19 vaccine drive stalled as officials directed more resources to mass testing and quarantine programs in a bid to keep cases at absolute zero.
  • China’s manufacturing activity contracted at the steepest pace in seven months in November.
  • New home prices in China fell for a fifth month in November amid growing financial troubles among the nation’s property developers.
  • Global economic growth could fall below 2% next year due to continued impacts from the war in Ukraine, the IMF says.
  • The collective debt service of the world’s low-income nations rose 35% the past year, increasing the risk of defaults, according to the World Bank.
  • A five-month downturn in euro-zone manufacturing activity eased in November, with S&P Global’s purchasing managers’ index rising from 46.4 to 47.1. A reading below 50 indicates industry contraction. 
Euro Area Manufacturing PMI

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