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Initial jobless claims fell 4,000 last week to 211,000, indicating no increase in layoffs. The markets had forecast a 2,000 rise in claims to 218,000 last week. Despite the escalating coronavirus outbreak, which has now been declared a global pandemic by the WHO, the labor market remains in good health.

The producer price index (PPI) posted the biggest drop in 5 years according to the latest report from the Labor Department. PPI dropped 0.6%, the most since January 2015, following strong growth of 0.5% in January 2020. The report follows news of an unexpected increase in consumer prices last month.

The consumer price index rose 0.1% last month, relatively in line with the flat reading expected. Higher rents and grocery costs contributed to a slight increase in the cost of living, but there has been no significant impact on costs related to the coronavirus outbreak as of yet, despite shopping frenzies for certain products like toilet paper and hand sanitizer.

The labor market outperformed expectations in February according to the latest report from the Labor Department, with 273,000 new jobs added to the market last month vs. 175,000 expected. The unemployment rate fell back to 3.5%, with companies continuing to hire in the US despite market concerns surround the escalating coronavirus outbreak developing worldwide.

Initial jobless claims fell 3,000 to 216,000 during the week ended February 29, with no indication of increased layoffs despite the ongoing virus outbreak crisis. The Federal Reserve implemented the first emergency rate cut since 2008 on Tuesday due to concerns around the outbreak, but the latest data shows that the impact on the US economy is in the early stages.

The Institute for Supply Management (ISM) non-manufacturing activity index rose from 55.5 to 57.3 last month, according to the latest report released on Wednesday. The reading indicates ongoing growth in services, beating the expectation of a slight drop to 54.9 for February. The report follows Tuesday’s surprise overnight interest rate cut, the first of its kind since the 2008 financial crisis.