The U.S. economy showed mixed results in January 2023. Unemployment fell to 3.4%, the lowest in over 53 years, and hiring increased to 517,000 jobs, but wage growth slowed, according to the WSJ. Consumer spending and manufacturing activity are both declining and the economy grew 1% in Q4 2022, down from 2021. Average payrolls grew by 247,000 per month in Q4 2022, down from 418,000 in the previous 9 months. Wage gains remain elevated but have cooled. Economists predict a 61% probability of a recession in the next 12 months with the unemployment rate rising to 4.7% by the end of the year. The labor market remains tight with 11 million job openings and first-time unemployment benefit applications fell to 183,000 last week. The Federal Reserve raised interest rates by 0.25% and predicts a couple more increases.