"The labor market is continuing to strengthen as we go into 2014. We should continue to see the unemployment rate go lower."
- Kevin Cummins, an economist at UBS Securities LLC
The world's largest economy ended the last year on a high note, as growing debates on whether how and when the Federal Reserve will start trimming down its stimulus programme helped to boost consumers' and businesses' confidence, positively contributing to the economy. Therefore, it was not a surprise that December's FOMC meeting only confirmed previous estimates, and hence, companies are expected to show stronger willingness to hire staff.
Following Wednesday's report showing stronger-than-expected payrolls growth in the private sector, a weekly survey from the Labour Department unveiled the number of application for jobless insurance payments sank to the lowest level in a month, totalling 330,000 in the week ended January 4, or 15,000 fewer from a week earlier. Moreover, the less-volatile four-week moving average reached 349,000 for the first time since late November, pointing to a more robust labour market throughout this year.
Another report on Thursday showed confidence among American consumers advanced higher at the beginning of 2014, while assessment of current conditions stood at the strongest level since September. At the time being the Fed is confident in the domestic economy, saying it will grow faster in the upcoming months, while the labour market would be strong enough to stop the stimulus programme by the end of 2014.
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