A series of data on Thursday shows that the US job market and the broader economy continue to recover, but there are some issues.
From the recovery of the labor market to the outlook for future growth, Thursday had plenty of data to capture the world’s largest economic trends as it continues to recover from the COVID-19 blockade and restrictions.
First, the employment market.
The US Department of Labor said last week that the number of Americans claiming unemployment benefits from the state dropped slightly to 411,000. 7,000 less than the previous week, which rose unexpectedly.
That upward scale last week looks like a blip. This is great news for job seekers, as weekly unemployed billing is a substitute for layoffs.
However, there is a controversial disconnection from the US employment market. The number of unemployed in the United States was 9.3 million in May, but in April Record high of 9.3 million jobs..
So what do you get?
Many lawmakers have accused the $ 300 weekly federal replenishment of unemployment allowances for acting as a discouragement to hit the pavement to get a job. With that belief, the governors of 26 states have announced that they will opt out of a federal unemployment allowance program that includes a weekly federal replenishment.
However, many economists claim that other factors are involved.
For starters, many companies are starting to reopen at once, which creates bottlenecks for certain types of labor. Some people who have lost their jobs due to the coronavirus pandemic may have decided to retire early. Many day care centers remain closed, and the issue of childcare options available to the unemployed continues. Fear of exposure to COVID-19 may also be on the sidelines of unemployment.
As part of that, the Federal Reserve Board of Governors, the central bank of the United States, has repeatedly stated that it will keep interest rates near zero to help Americans get back to work, and for some time if that is needed. We are prepared to tolerate higher inflation.
But all that simple money has also contributed to historically low mortgage rates, which in turn spurred both record high prices. New home and previously owned home May.
That’s because lucky people who continued to work during the pandemic and pushed their savings into the rising stock market want to build up their home down payments soundly and fix their sweet mortgage deals. The problem for them is that there is no single-family home that fulfills the dreams of all these aspiring homeowners.
One of the constraints on housing supply is the rise in building material costs as economies around the world resume, consumers get out of hibernation and demand stagnation is resolved. This is causing supply chain bottlenecks. In other words, the price of raw materials that pass through the economy and return to consumers is high.
What does commerce have to say?
Another report by the US Department of Commerce on Thursday showed that new orders for goods designed to last for more than three years (also known as “durable consumer goods”) increased by $ 5.7 billion or 2.3 percent in May. The surge was driven primarily by rising orders for automobiles and commercial aircraft. This is a good sign for air and air travel that has been hit hard by the pandemic.
With the removal of shipping, orders for durable consumer goods increased by only 0.3 percent. Take transport and defense orders, and orders actually fell 0.1 percent last month.
As you can imagine, the decline in orders for core capital goods as a substitute for business investment can be the result of bottlenecks.
If the company cannot procure what it needs domestically, it will be imported from overseas.
This explains why another report from the Commerce Department on Thursday showed that the country’s international trade deficit surged 2.8 percent last month to $ 88.1 billion, $ 2.4 billion higher than April measurements. Useful for. According to the same report, wholesale inventories in May increased 1.1% from the previous month and retail inventories decreased 0.8% from April measurements.
A third report from the Department of Commerce also said that the revised reading showed that the country’s economy had grown 6.4% in the first three months of this year-it hasn’t changed from the previous reading.
In summary, the country’s job market and economy as a whole continue to recover steadily, but as companies expand their businesses to meet all consumer demand, they face supply problems. I will.
Many economists see the country’s economy gaining momentum during the period April-June. The Federal Reserve Board of Atlanta’s GDP Now estimates that economic growth was strong at 9.7% in the second quarter.
Keeping track of US economic trends: what the latest data shows | Automotive Industry News
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