The Earnings | Weekly Extract January 17

As the market begins to recover after the disastrous 2022, we get the first statistic so far this year and it fills us with even more hope. This January 12, 2023, we learn that real earnings increased by 0.4% in the last month, the U.S. Bureau of Labor Statistics reported. Additionally, average weekly earnings increased by 0.1% over the previous month.

 Real average hourly earnings decreased 1.7%, seasonally adjusted, from December 2021 to December 2022. The change in real average hourly earnings combined with a 1.4% decrease in the average workweek resulted in a 3.1% decrease in real average weekly earnings during this period.

The U.S. Bureau of Statistics also shared another positive news to boost the market and investors. Last month's consumer price index declined by 0.1%. Of note, the gasoline index was the largest contributor to the monthly decline for all items, contributing a decrease of 9.4%. This represents a decline of about 1.5% from 1 year ago, when gasoline was above 5 $ per gallon.

Indexes that increased in December include the indexes for shelter, home furnishings and operations, motor vehicle insurance, recreation, and apparel. On the other hand, used car and truck indexes and airline fares were among those that declined during the month. As much as one can infer that it has been a good start so far this year, there is still a lot of ground to cover to recover all of the 2022 hits. 

The Fed raises its borrowing rate to the highest level in 15 years

It should be remembered that the U.S. central bank can slow this momentum in the economy by raising interest rates. Officials are analyzing how much further they need to go with interest rate hikes used to slow the economy and control inflation. So far, the Fed has raised its benchmark borrowing rate 4.25 percentage points to its highest level in 15 years.