Good News: The Booming Trump Economy Looks '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.
Already, the Atlanta Fed's GDPNow tracker sees the second
quarter rising by 4.8 percent:shock:
Department of Labor: "For the first time on record, the number of American job openings exceeds the number of job seekers.
https://www.cnbc.com/2018/06/01/the-us-economy-suddenly-looks-like-its-unstoppable.html
Right now the spinmeisters at DNC are busy trying to come up with ways to show how this is all terrible news or credit goes to Obama. :lamo
