The U.S. economy downshifted in the final three months of 2020 after record third-quarter growth, as the pandemic battered the labor market and limited Americans’ ability and willingness to spend.

Production at U.S. manufacturers increased in December by more than projected, marking an eighth straight month of gains as steady yet more moderate demand growth and lean inventories continue to power the sector’s recovery.

A key measure of prices paid by U.S. consumers cooled in December from a month earlier as slack in the labor market and muted demand helped keep inflation pressures tame.

Applications for U.S. state unemployment benefits were little changed at elevated levels in the final week of 2020, indicating the labor market remains battered with the pandemic dragging on.

A measure of U.S. manufacturing expanded in December at the fastest pace in more than two years, bolstered by a pickup in new orders and the strongest growth in production since 2011.

U.S. manufacturing output rose by more than forecast in November thanks to a boost in auto production, helping factories continue to rebound toward their pre-pandemic capacity and strength.

The U.S. labor market rebound slowed markedly in November, indicating the surge in COVID-19 cases is hitting workers and curbing the broader economic recovery as the unemployment rate edged down to 6.7%

The U.S. economy bounced back with a record yet temporary surge of growth in the third quarter as businesses reopened and stimulus cash powered consumer spending — reversing much of the collapse stemming from coronavirus lockdowns.

U.S. orders for durable goods increased in August at a slower pace than expected, restrained by declines in bookings for motor vehicles and military equipment, though a gauge of business investment rose more than forecast.

Applications for U.S. state unemployment benefits held steady last week, a sign extensive job losses are persisting as the nation struggles to control the coronavirus.