Weakening labor market contrasts with global economic growth

The US labor market showed signs of weakening in November, with the unemployment rate rising to 4.2% from 3.7% a year earlier. This increase represents 883,000 more jobless Americans, the US Bureau of Labor Statistics reported. The labor force participation rate fell to 62.5%, marking its lowest level since May. The share of unemployed workers without jobs for over six months has increased, reflecting a cooling in labor demand. Some sectors like healthcare, leisure and hospitality, and state and local governments were bright spots as they continued hiring.

Lower payroll numbers were also reported in the eurozone, UK and mainland China as companies took a cautious approach to hiring due to heightened geopolitical uncertainty. Despite these challenges, S&P Global's Purchasing Managers' Index surveys highlighted robust global economic growth in November, led by the US. The headline global PMI rose to 52.4 from 52.3 in October, the highest level since August. The PMI seems to indicate that the global economy is growing at a 2.7% annualized rate, slightly below the pre-pandemic decade average of 3.1%. The service sector, particularly financial services, continued to fuel growth last month. Manufacturing output barely grew but showed signs of recovery due to US stock building linked to anticipated tariffs, which may prove temporary.

The US recorded the strongest expansion among major developed markets for the seventh consecutive month, with growth reaching its fastest pace since April 2022. A surge in services activity offset a further decline in manufacturing output. Growth also recovered in Canada amid improved manufacturing and services performances. In contrast, eurozone output fell at the sharpest rate in 10 months as a deepening factory downturn spread to services. The UK, meanwhile, joined Australia and Japan in reporting largely stalled growth.

Globally, the divergence in growth between the global manufacturing and service sectors continued to impact hiring decisions. Manufacturing workers faced job cuts as businesses grappled with weak client demand and cost pressures. Service sector employment growth in Europe was slight, reflecting trends in the broader global market, while job gains in Asia were limited to certain segments.

?

Deep Dives

In-depth features looking at the impact of major news developments in key industries.

Financials

Income gains across banks in India to help reduce bad loans

State-owned banks outclassed their private-sector peers in growing profits in the fiscal second quarter even amid erosion in their net interest margins.

—Read more on S&P Global Market Intelligence.

US bank, credit union auto loan delinquency ratios up in Q3

Santander Holdings USA had the highest auto loan delinquency ratio among the top 25 banks by auto loans as of Sept. 30, according to S&P Global Market Intelligence data.

—Read more on S&P Global Market Intelligence.

Major Chinese banks log higher loan-to-deposit ratios as rate cuts hit

Loan-to-deposit ratios at most of China's largest lenders increased year over year in the nine months ended Sept. 30, as deposit growth trailed that of loans amid rate cuts and government stimulus measures.

—Read more on S&P Global Market Intelligence.

US banks report fewer brokered deposits for 3rd consecutive quarter

The continued decline came as the FDIC approved and sought public comments on a proposal to count deposits from fintechs as brokered deposits to mitigate potential liquidity risks.

—Read more on S&P Global Market Intelligence.

?

Insurance

Amid growing issues with affordability, P&C insurers outspend peers on lobbying

In 2023, the last year for which data is currently available, property and casualty insurers spent about $57.2 million on lobbying, while health insurers spent about $49.2 million and life insurers spent approximately $31.1 million.

—Read more on S&P Global Market Intelligence.

?

Real Estate

Originations of 1- to 4-family mortgages reach 2-year peak

That trend is expected to continue after a potential slowdown in the fourth quarter.

—Read more on S&P Global Market Intelligence.

?

Private Equity

Private equity and venture capital deal value plunges 43% in November

Private equity and venture capital deal value in November decreased to $29.56 billion year over year.

—Read more on S&P Global Market Intelligence.

?

Credit and Markets

US corporate bankruptcies just below 14-year high as November filings surge

US bankruptcies are set to hit a 14-year high in 2024 after the consumer and industrial sectors drove an uptick of filings in November.

—Read more on S&P Global Market Intelligence.

Emerging market growth accelerates amid fastest rise in exports for 6 months

Emerging market economic growth accelerated in the penultimate month of the year, according to S&P Global's PMI surveys.

—Read more on S&P Global Market Intelligence.

?

Energy and Utilities

RRA Research: Solar-plus-storage 101 – Hybridizing market dynamics and 10-year projections

Colocated solar-plus-storage systems, which smooth out intermittency challenges, have the wind at their backs in the US, with more than 160 GW in planning and nearly 660 GW in interconnection queues.

—Read more on S&P Global Market Intelligence.

Entergy's status as 'one-stop shop' helped lure massive Meta deal – CEO

"It turns out that we have some real advantages in this space," Entergy CEO Drew Marsh said in an interview after Meta Platforms announced plans for a $10 billion datacenter in northeast Louisiana.

—Read more on S&P Global Market Intelligence.

Investors maintain interest in midstream stocks in Q3 2024

Six out of a select nine midstream companies saw net increases in shares purchased by banks and investment funds in the third quarter, according to an S&P Global Market Intelligence analysis.

—Read more on S&P Global Market Intelligence.

?

Technology, Media and Telecommunications

451 Research: Generative AI Digest: A shift to the application layer

Major GenAI players are targeting the opportunity presented by AI agents, while model providers are enhancing their enterprise chat products, building compelling user experiences and encouraging more robust application development on their platforms.

—Read more on S&P Global Market Intelligence.

Tech IPOs poised for return to pre-pandemic normalcy in 2025

The tech IPO market is expected to rebound in 2025 following three years of stagnation as favorable conditions emerge, such as lower interest rates and an investor shift to small- and mid-cap companies.

—Read more on S&P Global Market Intelligence.

?

Metals and Mining

Major gold producers' Q3 2024 all-in sustaining costs increase 4.9% QOQ

Gold production costs rose in the third quarter due primarily to labor costs, despite historically high gold prices.

—Read more on S&P Global Market Intelligence.

The Week in M&A

?

November pushes large global M&A activity to 3-quarter high

Read on S&P Global Market Intelligence

Bank M&A Deal Tracker: 4th largest deal of 2024 announced in November

Read on S&P Global Market Intelligence

Credit union merger activity expected to grow sharply in 2025, 2026

Read on S&P Global Market Intelligence

BBVA would likely sell UK-based TSB if successful in Sabadell pursuit – analysts

Read on S&P Global Market Intelligence

Omnicom's Interpublic buy offers long-term benefits, short-term risks

Read on S&P Global Market Intelligence

?

The Big Number

?Read on S&P Global Market Intelligence

?

Trending

—Listen on S&P Global Market Intelligence and follow Iuri Struta on LinkedIn.