U.S. Economy Continues to Grow Despite Trade Tensions
The unemployment rate remained at 3.9 percent, its lowest level since April 2000, and the U.S. economy added 201,000 jobs in June 2018, according to the latest numbers from the Bureau of Labor Statistics (BLS). The BLS report found that employment growth has averaged 207,000 jobs per month in 2018, with four straight months of job gains above 200,000 and 14 consecutive months of positive job growth overall. Among industries with significant numbers of employees, retail trade rose by 26,300 jobs; construction gained 23,000; and professional and business services increased by 22,800 jobs in June 2018.
Stronger Jobs Data Bolsters Fed’s Case for More Rate Hikes
The Labor Department said nonfarm payrolls rose by 200,000 jobs in June, easily topping economists’ expectations for 175,000 new jobs and marking the ninth straight month of job gains above 200,000. This positive report comes as trade tensions have ratcheted up in recent weeks.
Stronger Economies Could Weigh on Dollar
The dollar’s rally is likely at its end, said Andrew Brenner, head of international fixed income at National Alliance Securities in New York. While economic data has been solid in 2018, risk aversion and stronger growth have already outweighed [dollars] upside from strong U.S.
Labor Market Isn’t in Danger From Tariffs Yet
Key Takeaways from a Recent Job Report: The U.S. economy continued its vigorous hiring in May, adding a robust 223,000 new jobs, with upward revisions for previous months adding another 60,000 or so jobs to that total since March. The unemployment rate ticked up slightly to 4 percent due mainly to more workers entering the labor force and looking for work—consistent with expectations of a tightening labor market and growing wages ahead.
Report Highlights Mixed Signals From Trade, Policymakers
The U.S. economy grew at a 2.3 percent pace in 2018, according to new projections from BLS economists, with retail trade and manufacturing gaining momentum despite fears about slowing global growth and Washington’s trade tensions with China, Canada and Mexico.
Inflation Still Below Fed’s Target Amid Stronger Global Growth
Fed officials raised interest rates last month as expected, but they also said policy will likely remain easy for some time after their benchmark rate reaches a neutral level —the midpoint between a full tightening and easing stance—around 3 percent. That’s consistent with Fed projections for economic growth of about 2 percent in 2018 and 2019, along with core inflation staying around 2 percent through 2020. Both those forecasts have been made in light of potentially slower global growth from tariffs that U.S.
U.S. GDP Grew at Solid 2.3% Pace in Fourth Quarter
According to newly released data from BEA, U.S.