While the fiscal cliff did not seem to cut off the recovery in December, two problems loom large, each capable of keeping business sentiment dim: the debt ceiling and the sequester.

FORBES: U.S. Growth Still Sluggish: 155,000 New Jobs In Dec., Unemployment Higher At 7.8%

The US defence department says it has begun laying off most of its 46, 000 temporary employees, as automatic defence budget cuts loom in March.

BBC: Pentagon laying off 46,000 staff