White House economic adviser Larry Kudlow believes the US economy will continue to grow at a robust pace as the Y 2020 election season proceeds.
“This continuing Bull market run indicates a lot of investor, consumer and business confidence, in my judgment,” Mr. Kudlow said.
Early in Fridays session, the DJIA broke above 29,000 for the 1st time ever.
Wall Street’s main indexes brushed off government data that showed domestic jobs increased by 145,000 last month, below the forecast for a 164,000 rise, as the pace of hiring remained more than enough to keep the longest economic expansion in history on track, Reuters explained.
The Labor Department’s closely watched monthly employment report on Friday also showed the jobless rate holding near a 50-yr low of 3.5%.
A broader measure of unemployment dropped to a record low last month, but wage gains ebbed.
The labor force participation rate, or the proportion of working-age Americans who have a job or are looking for 1, was steady at 63.2% last month.
Despite the tight labor market, wage inflation is still muted.
Average hourly earnings rose 3c, or 0.1% last month, after gaining 0.3% in November. That lowered the annual increase in wages to 2.9% in December from 3.1% in November.
The final employment report of the decade showed the economy created 2.1-M jobs in Y2019, the least since Y2011 and down from 2.7-M in Y 2018.
Mr. Kudlow said in a TV interview that the nation “is very fully employed,” and that there was little sense in cherry-picking the data to find weak spots.
He said the jobs report “is a good number, solid economic growth number and again 3.5% unemployment is a remarkable number.”
“The soaring stock market indicates higher economic growth, and I think it’s forecasting essentially an even stronger economy in the coming year,” said Mr. Kudlow, who served as The Trump Campaign’s senior economic adviser.
Household net worth has risen dramatically in the past 3 years, and bigger gains among lower-income households are especially encouraging.
“That’s very important because that’s the sign of an economy that’s been restructured and reopened and has more dynamism,” Mr. Kudlow said.
Earlier this week, Mr. Kudlow predicted 3% growth for the nation’s GDP in the next year as economic indicators continue to post strong gains.
The consumer and business confidence setting us up for a return to 3% growth in Y 2020 and making a case for President Trump’s re-election.
“Almost nobody expected that to happen, and then it happened, and it got stronger,” Mr. Kudlow said about 30% growth in the stock market indexes. “The way I read it is, the market is a very strong signal of tremendous consumer and business confidence, a tremendous signal of confidence.
“It tells me that the economy in the coming year is going to be even stronger, probably back into a 3% growth zone.”
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