A pedestrian holds an umbrella as they walk along a street within the rain in Times Square, Latest York, on Sept. 26, 2023.
Ed Jones | AFP | Getty Images
The state of the U.S. economy could also be a chief concern amongst Americans, but 2023 wound up as a fairly good 12 months for the macroenvironment.
Spending remained high, markets posted big gains and the Federal Reserve’s battle against inflation showed signs of cooling — without freezing. Then there’s the virtually logic-defying resilience of the job market.
The U.S. labor market ended the 12 months strong, creating greater than 200,000 jobs in December, in line with figures released Friday by the U.S. Bureau of Labor Statistics. While previous job creation estimates for October and November were revised downward by a combined 75,000, the unemployment rate remained at a low 3.7%, and December marked the thirty sixth consecutive month of job creation for the U.S. economy.
In total, the U.S. created nearly 2.7 million jobs in 2023, when seasonally adjusted. That figure got here despite concerns that the Federal Reserve’s ongoing fight against inflation through rate of interest hikes might cool the labor market and put a chill on consumer spending.
Neither of those concerns got here to fruition, nevertheless. The truth is, consumer spending remained robust all year long, with monthly advanced retail sales staying above the $600 million mark for many of 2023, proving that despite many economic headwinds, U.S. consumers couldn’t be deterred.
Listed here are nine other charts that show how the economy rounded out 2023.
Inflation, wages and spending
While inflation continues to be top of mind for U.S. consumers, the speed of inflation cooled significantly in 2023. Meanwhile, wages rose all year long, eventually outpacing price increases.
U.S. consumers were in a mood to spend, particularly on experiences: 2023 was officially the 12 months that travel rebounded, with the Thanksgiving holiday period breaking U.S. records. Nearly 150 million passengers were screened by the Transportation Security Administration across U.S. airports in November and December.
Americans spent on entertainment, too. With major hits similar to “Barbie,” “Oppenheimer” and Taylor Swift’s The Eras Tour concert film, the U.S. box office got here back in an enormous way last 12 months from its Covid-19 pandemic lows.
Markets
Even assets similar to crypto saw a rebound in 2023 after hitting a low in November of the previous 12 months. Bitcoin prices ended the 12 months at almost 3 times that previous low.
Rates of interest and housing
There have been some trouble areas for consumers, nevertheless. Mortgage rates proceed to be high. The typical 30-year fixed rate in October was nearly triple what it was at the top of 2020 — although rates got here down significantly by the top of the 12 months — and existing home sales remain low, in line with data from the National Association of Realtors. Until more housing inventory comes online, those issues are more likely to persist into 2024.
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