The US economy suddenly looks like it's unstoppable
In the face of persistent fears that the world could be facing a trade war and a synchronized slowdown, the U.S. economy enters June with a good deal of momentum.
Friday's data provided convincing evidence that domestic growth remains intact even if other developed economies are slowing. A better-than-expected nonfarm payrolls report coupled with a convincing uptick in manufacturing and construction activity showed that the second half approaches with a tail wind blowing.
"The fundamentals all look very solid right now," said Gus Faucher, chief economist at PNC. "You've got job growth and wage gains that are supporting consumer spending, and tax cuts as well. There's a little bit of a drag from higher energy prices, but the positives far outweigh that. Business incentives are in good shape."
The day started off with the payrolls report showing a gain of 223,000 in May, well above market expectations of 188,000, and the unemployment rate hitting an 18-year low of 3.8 percent.
Then, the ISM manufacturing index registered a 58.7 reading — representing the percentage of businesses that report expanding conditions — that also topped Wall Street estimates. Finally, the construction spending report showed a monthly gain of 1.8 percent, a full point higher than expectations.
Put together, the data helped fuel expectations that first-quarter growth of 2.2 percent will be the low-water point of 2018.
--------------------------------
In other news, the Democrats still hate everything that is good and American.
Sour Pelosi poo-poos booming economy: ‘Strong employment numbers mean little’
The Trump economy is booming, but that’s not good enough for Nancy Pelosi.
The May unemployment rate was a stunningly low 3.8 percent, according to the Wall Street Journal.
Black unemployment is the lowest ever: 5.9 percent, the Washington Examiner reports.
But instead of celebrating the incredible economic activity, the House Speaker wannabe shrugged.
“May’s jobs report shows that strong employment numbers mean little to the families hit with soaring new costs under the Republicans’ watch,” the House Minority Leader said in a statement.
She added:
Republicans’ cruel, cynical health care sabotage campaign is already spiking families’ premiums by double digits and pushing millions off their coverage, according to the nonpartisan CBO. Big Pharma continues to hoard the benefits of the GOP tax scam, using their handouts to further enrich executives and shareholders instead of lowering prescription drug costs for seniors and sick kids. At the same time, the President’s reckless policies are exploding gas prices, wiping out the few meager gains that some families should have received from the GOP tax scam, as wages remain stagnant.
“Democrats will never stop fighting for the hard-working middle class families who are the backbone of our nation,” she claimed.
It’s not the first time Pelosi was sour about positive economic news.
She had a similar response during Trump’s first speech to Congress last year.
