Episode 58: The latest data paints a picture of an economy still growing but showing clear signs of cooling beneath the surface.
- January payrolls were up by 130,000 jobs, nearly double forecasts, according to the Bureau of Labor Statistics.
- Unemployment edged down to 4.3%.
- Benchmark revisions removed 900,000 jobs from 2025 totals, signaling a weaker 2025 labor market than previously understood.
- The January Consumer Price Index (CPI) slowed to 2.4% year-over-year, while monthly CPI rose 0.2%.
- Shelter inflation increased 0.2%, the smallest monthly gain in some time.
- Core CPI rose 0.3% month-over-month.
- Existing home sales dropped 8.4% in January to 3.91 million annualized, which was the deepest monthly decline in nearly four years.
- Median existing home prices hit $397,000, only slightly above last year’s rate.
- Mortgage delinquencies increased to 4.26% in 4th quarter. FHA delinquencies climbed to 11.52%, the highest since mid-2021.
For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.
