Good afternoon, it is January 11th 2021 and here is your economic and market update from BlackBee.
- Ulster Bank Construction PMI; Construction sector ends 2020 in expansion mode with housebuilding activity reaching a five month high.
- Seasonally adjusted unemployment rate falls to 7.2% in December, down from 7.3% in November. Covid-19 adjusted unemployment rate stands at 20.4% in December.
According to Ulster Bank’s construction purchasing managers index (PMI), the construction industry closed out 2020 in “expansion mode” fuelled by housebuilding activity that reached a five-month high in December. In the report, Simon Barry, Ulster Bank’s chief economist, noted that “optimism about the year ahead improved further last month as sentiment rose to its highest level since February 2020”. However, following the government’s decision to shut-down most non-essential building on Friday, all sectors are likely to show significant reverses in early 2021. The report showed a second consecutive month of expansion in Irish construction activity, albeit with December’s expansion at a slightly weaker pace compared to November. Job creation in December was at an 18 month high in December. Social housing projects are one area that is designated as essential by local authorities and allowed to remain open. (Source: Irish Times, Ulster Bank).
Figures released from the CSO show that the seasonally adjusted monthly unemployment rate stood at 7.2% in December, down from 7.3% in November. In December 2019, the unemployment rate stood at 4.7%. The number of persons unemployed on a seasonally adjusted rate amounted to 179,400 in December 2020, an increase of 62,800 from December 2019. Across the demographic groups, unemployment stood at 19.4% for those aged between 15 to 24 years with the unemployment rate at 5.4% for those aged 25 to 74 years. The Covid-19 adjusted unemployment rate was 20.4% in December, down from 21% in November. Using this method to calculate the unemployment rate, the unemployment rate for those aged 15 to 24 years is 44.8% and 17% for those aged 25 to 74 years. (Source: CSO).
Best & Worst Performers of Large Cap US Stocks on Friday
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Global Market Update
(as at close of markets 08/01/2021)