The Trump Effect: US Economy is Strong
The strong US economy continues under President Donald Trump.
A string of reports Thursday showed the labor market is getting stronger, consumers are increasingly optimistic and manufacturers are expanding, adding to signs that GDP (gross domestic product) remains on track for a solid performance in Q-3
Filings for unemployment benefits unexpectedly fell for a 3rd week running to a new 48-year low, as businesses hold on to existing staff amid a shortage of skilled workers, according to Labor Department figures.
That is a good sign for the September payrolls report
The claims data, covering the week containing the 12th of the month, coincide with the reference period for the Labor Department’s survey for the monthly figures.
The Consumer Comfort Index showed sentiment advanced last week to a new 17-year high on brighter views of the economy, personal finances and the buying climate. In addition, the report’s monthly economic expectations index rose to 57.5 in September, the highest since March 2002.
A gauge of manufacturing from the Federal Reserve Bank of Philadelphia rebounded by more than projected in September from the lowest level in almost 2 years, as orders, shipments and employment picked up. At the same time, price pressures are easing, as a gauge of input prices fell to the lowest since January.
Some of the news was less upbeat
Sales of previously owned homes were unchanged in August from the prior month at a 5.34-M annual pace, trailing economists’ estimates, data from the National Association of Realtors showed. That capped d a streak of 4 straight monthly decliners. Home prices remain high, though slowing sales led to the 1st annual rise in inventory in 3 years.
The economy is facing some headwinds
The trade disputed could weigh on consumer moods and lift inflation as The Trump Administration proceeds with more tariffs on Chinese good next week The Fed is expected to raise interest rates next week, boosting borrowing costs for businesses and consumers, though not very much if at all.
Note: The DJIA marked the 100th record high since President Trump took the Oval Office: Very Bullish
Keeping America Great!