US jobless claims fell to an 8-month low last week. “While last week’s data included a long holiday, the drop in new claims, the year’s first important piece of economic data, suggested that the labor market remains resilient,” writes an analyst RSM US LLP.

US manufacturing sector output fell in December at “at fastest pace in 18 months,” according to the survey-based PMI report. “The US manufacturing sector ended 2024 on a downbeat note. After having neared stabilization in the previous month, December saw a sharper reduction in new orders.”

US construction spending was unexpectedly flat in November. Economists projecteed spending to rise 0.3% vs. October, which posted a 0.4% increase in the data originally reported for the month.

The U.S. dollar index rose to its highest level for more than two years on Thursday. “Already [U.S.] growth has kept outpacing forecasts as consumers and companies have shrugged off the impact of high interest rates, with the unemployment rate remaining low,” writes Susannah Streeter, head of money and markets at Hargreaves Lansdown, in a note.

The US Labor Market looks set to post moderate growth in the near term, advises a new report from TMC Research, a division of The Milwaukee Company, a wealth management firm. “Hiring slowed through much of 2024, but a firmer round of growth emerged in the fourth quarter. The 3-month moving average of monthly changes in nonfarm payrolls rebounded to 173,000 in November, the highest since May.” Another upbeat indicator for the labor market is the recent decline in jobless claims, a leading indicator for hiring. The 6-month average of weekly claims fell to 223,000, which is close to the lowest level since July.