July NFP = +164K

The jobs machine continues. The U.S. economy created 164,000 net new jobs last month. The unemployment rate stayed at 3.7%.

Overall, the job market is healthy, and the data were broadly in line with expectations. Economists surveyed by The Wall Street Journal had forecast a gain of 165,000 new jobs in July, a 3.6% unemployment rate and 3.1% annual wage growth.

Through the first seven months of the year, employers have added 165,000 jobs a month, on average, below 2018’s average monthly pace of 223,000.

The decadelong U.S. expansion became the longest on record in July. While there is no rule that says the expansion must end, Friday’s jobs report adds to the evidence it is still solid but losing some steam.

Gross domestic product, a broad measure of goods and services across the economy, increased at a 2.1% annual rate in the second quarter, down sharply from a 3.1% pace in the first quarter. Business spending has faltered in recent months. Manufacturing output has declined since the end of 2018, though more recently it has ticked up slightly.

Posted by on August 2nd, 2019 at 11:19 am


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