Recession risk in the US remains low in the wake of several upbeat economic. Retail sales and residential housing construction in particular posted firmer numbers for October. Industrial output was flat last month, but the mildly negative annual trend continues to move closer to zero, driven by modest growth in the manufacturing sector. Meanwhile, the labor market still looks poised to expand. Payrolls continued to rise in October and growth looks poised to continue in the near term based on yesterday’s news that jobless claims dropped to the lowest level since 1973.
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