After the drama of a temporary US government shutdown, it was a case of back to business as usual in November. The release of the US Federal Open Market Committee’s (FOMC) October minutes showed the Fed may begin tapering its asset purchasing program in the coming months if the economy improves sufficiently, although most expectations have targeted Q1 2014 as the most likely date. Over the month, conflicting labour market statistics were released. Despite 204,000 net new jobs being created, the unemployment rate edged higher to 7.3% with an accompanying decrease in the participation rate, which fell to its lowest level since 1978. Meanwhile, manufacturing activity remains robust, with the national ISM survey accelerating to its highest level since April 2011, led by an improvement in export orders. Similarly positive was the building permits release which jumped to a five year high. Elsewhere, the Senate Banking Committee voted 14-8 in support of Janet Yellen’s nomination as the next Chair of the US Federal Reserve. Her nomination is now with the Democratic controlled Senate, but this now seems all but assured with a rule change requiring only a majority of votes to approve her nomination.
