U.S. Review
Is the Economy in a Freeze?
· Businesses added 113,000 jobs in January, which was fewer than expected. Bitter cold weather and storms looked to have had little effect on the data based on the number of people who reported not working due to weather. The unemployment rate ticked down to 6.6 percent as more than 600,000 people were counted as newly employed in the household survey.
· The ISM manufacturing index sank 5.2 points in January, although the index remained in expansion territory. Adverse weather was cited for part of the slowdown. Service-sector activity looked more solid, with the ISM non-manufacturing index climbing to 54.0.
Global Review
Plan for Monetary Policy in Europe: Sit Tight for Now
· After surprising financial markets with a mostly unexpected rate cut in November, the European Central Bank opted to sit tight at its meeting this week even as inflation there has entered what ECB President Mario Draghi has called the “danger zone.”
· The Bank of England also remained on hold despite firming in the labor market that has moved the unemployment rate close to a threshold point for a rate cut.
Read the full report: Economic Research
Wells Fargo