Overview: Employment increased by 36,000 in January as the unemployment rate fell to 9.0%.  Productivity advanced at an annual rate of 2.6% in the 4^th quarter of 2010.  The ISM index rose 2.3 points to 60.8 in January as the ISM services index rose 2.3 points to 59.4. Personal income increased 0.4% in December; spending rose 0.7%.  Auto sales edged up 0.6% in January.  Construction spending fell 2.5% in December.  Factory orders were down 0.2% in December.  Initial jobless claims fell by 42,000 to a level of 415,000 for the week ended 1/29.

• The economy added 36,000 jobs in January as the unemployment rate jumped down to 9.0%.  Although the two data points—number of jobs and the unemployment rate—come from two separate surveys, a likely explanation for the significant decline in the unemployment rate without a large gain in jobs was a substantial decline of 504,000 in the size of the labor force (job gains of 130,000 jobs per month are necessary to maintain a stable employment rate in a healthy economy). 
• Productivity advanced at an annual pace of 2.6% in the 4^th quarter of 2010, according to the preliminary estimate.    
• The ISM index rose 2.3 points to 60.8 in January, marking a nearly seven-year high. 
• The ISM services index also rose 2.3 points, to 59.4 in January. 
• Personal income was up 0.4% in December as personal spending rose 0.7%. 
• Auto sales rose 0.61% in January to an annual pace of 12.6 million units.  Sales were up 17.4% from January of 2010. 
• Construction spending fell 2.5% in December.
• Factory orders edged up 0.2% in December. 
• Initial jobless claims fell by 42,000 to 415,000 for the week ended January 29^th.