WASHINGTON - U.S. manufacturing activity slowed to a near three-year low in July and hiring at factories shifted into lower gear, suggesting a further loss of momentum in economic growth early in the third quarter as trade tensions between Washington and Beijing persist.
Fed Chairman Jerome Powell told reporters during a news conference that the preemptive monetary policy easing was “not the beginning of a long series of rate cuts.” Powell described manufacturing as “not growing much,” saying “we hope to help that with this rate cut.” The United States’ trade war with China has hurt business sentiment. That, together with disruptions to supply chains caused by import tariffs, is weighing on manufacturing.
The government is due to publish July’s employment report on Friday. According to a Reuters survey of economists, nonfarm payrolls likely increased by 164,000 jobs in July after surging by 224,000 in June. Manufacturing payrolls are expected to have risen by 5,000 jobs last month after advancing 17,000 in June.
Despite the economy shifting into lower gear, mainly as the stimulus from last year’s $1.5 trillion tax cut package fades, the labor market has remained resilient. The economy grew at a 2.1% annualized rate in the second quarter. Economists expect growth will slow to around a 1.5% pace in the third quarter.
Employment is a trailing indicator. The economy is starting to unravel now. Unemployment will start going up in a few months.
Healthy job market for who? I know plenty of unemployed people. Most being college graduates. Menial labor won’t pay their loans or cost of living. Other job openings in the tertiary sector have few qualified candidates. Truth is this job market stinks.
But the TAX SCAM?!!!
Strangely, this mirrors the UK economy 🤔
So much winning! All this tariff winning has done well for the manufacturing and farming sections of America. More tariffs PLEASE!
Job market not healthy. Unemployment. It healthy. Economy not healthy. Not for about three years now. So just stop.
I wish we gat 30% of ur industry back here Nigeria, u just don't know what it means to us