U.S. Labor Market Signals Slowdown Despite January Job Gains

The U.S. added +130,000 jobs in January, above the +30,000 average, but -898,000 job revisions in 2025 signal a slowing labor market.

The unemployment rate eased to 4.3%, while wages increased +3.7% YoY, remaining above inflation, which stands at 2.8%.

Consumer Confidence dropped sharply to 84.5, the lowest level since 2014, reflecting weaker sentiment.

Overall consumer spending rose +2.6% YoY, with apparel spending strengthening to +8.0% YoY in November.

Apparel prices were up just +0.4% YoY, while import shipments declined -20% in October, indicating softer trade activity.