Factories Expand 17 Consecutive Months, Jobs Don't

Normally there are a lot of layoffs in January for obvious seasonal reasons. However, some of the recent hiring by stores might be permanent. If so, some expected layoff may not happen and we could see a couple of really nice looking jobs reports.

However, it would be a mistake to think that stores are going to keep hiring at a brisk pace all year simply because a couple of months look good. Headwinds are enormous and the mess states face is not accounted for. We are not going to spend our way back to prosperity regardless of what Keynesian clowns may think.