Busy week of data

Recent economic data provided a little something for everyone, but nothing definitive for anyone. 

The highlight of the week, the monthly employment report for February, showed better-than-expected job growth, as 275,000 new jobs were added. But that came in the context of a rise in the unemployment rate from 3.7% to 3.9%. Also, the prior two months of jobs data were revised lower by 167,000. The labor force participation continued at 62.5%, weekly hours worked increased slightly and average hourly earnings growth declined a tick over the past year, from 4.4% to 4.3%. The Federal Reserve should be pleased with this report as it shows wage pressures in the labor market and job vacancies relative to unemployment have eased. 

With the next Federal Open Market Committee meeting coming March 20, incoming economic data will again take center stage. Consumer and wholesale inflation, retail sales, consumer confidence, weekly jobless claims—all will be helpful in determining its course of action. At this meeting, the Fed will release its updated summary of economic projections. That will lay out policymakers’ collective views on the pace and course of key data such as unemployment, economic growth, inflation and, of course, the fed funds rate. March will wind up being an action-packed month.