There’s lots to like in July’s jobs report. Employers added 209,000 jobs last month, more than forecast. Wage growth rose 2.5% in July from a year earlier, not amazing but steady and right in line with expectations. Hours worked per week by private employees held steady at 34.5. The jobless rate fell by a tenth of percentage point to 4.3%, matching May as the lowest level of unemployment in 16 years. The U.S. trade gap narrowed sharply in June as a strengthening global economy pushes up demand for American exports overseas. The labor force participation rate, a measure of all the workers who could be working that either are working or looking for work, rose to 62.9% in July from 62.8% in June. Economists surveyed by The Wall Street Journal expected employers to add 180,000 jobs.
Here’s Stuart Varney wondering where all the happy talk is from the mainstream media about the good economic news.
Trump effect? Yeah, I think so. One of the most significant parts of this is that corporate investment is growing strongly. Business leaders get that the era of over-regulation is over and their taxes might be going down.
The second quarter is the first one that is more a Trump quarter than an Obama quarter, though of course we’ll be saddled with Obama’s lousy economic program for a long time. Two and half percent is not great, but it’s not bad, and it is a full point above average economic growth during the Obama administration and half a point above the “Obama recovery” era.
Gross domestic product, a broad measure of goods and services produced in the U.S., rose at a 2.6% annual rate in the April to June period, the Commerce Department said Friday.
The second-quarter advance is a welcome rebound after a lackluster start to the year, when GDP grew at only 1.2% pace. It is less clear if stronger growth is a sign of momentum or simply repeating a familiar pattern of weak winters followed by a stronger spring and summer.
Details within Friday’s report were generally positive.
Both consumers and businesses helped propel growth in the second quarter.
Household outlays rose at a 2.8% pace, an improvement from the first quarter’s 1.9%. Consumers stepped up spending on both goods and services, possibly reflecting a broadly positive outlook since the election. The Conference Board’s index of consumer confidence in July rose to the second-highest level in 16 years.
Businesses also have been upbeat. A measure of corporate spending on projects, nonresidential fixed investment, climbed at a 5.2% pace. While that was down from the first quarter’s 7.2%, it is still one of the best readings since 2014.
President Obama walked offstage, and the press applauded him, as if he were some kind of extraordinarily successful, accomplished president. But he failed on both the economy and foreign relations. What else is there?
Economic growth slowed to end 2016, the Bureau of Economic Analysis reported Friday, but still remained stronger than earlier in the year.
Adjusted for inflation, U.S. gross domestic product grew at a 1.9 percent annual rate to end the fourth quarter, the bureau reported, below economists’ expectations and down from a robust 3.5 percent clip the quarter. The bureau adjusts GDP growth rates to account for seasonal variations.
For the year, GDP grew at 1.6 percent, the slowest rate since 2011.
Remember all that talk over the previous months about steady interest rate increases by the Fed? Well, forget about it. The Fed made clear this week that it understands that the Obama economy is not going anywhere and, therefore, neither are rates. President Obama actually thinks he’s doing a great job with the economy. The… Continue Reading
This is from Fox News’ Red Eye Last night. Host Tom Shillue quotes a poll of young adults between the ages of 18 and 29 that finds 51 percent don’t support capitalism, 42 percent do, and 33 percent say they support Socialism. Respondents said capitalism is “unfair.” Well, as Shillue notes, they’re right, and that’s… Continue Reading
Okay, Mr. President. At White House Dossier, you get all the credit. We’re basically within an accounting error of a recession, and President Obama is front and center on the New York Times website Thursday grumbling that he is not getting credit for fixing the economy. The economy, in the first quarter of 2016, grew at an annualized… Continue Reading
One of the enduring myths of the past few years, trumpeted by the White House and accepted by much of the press, is that President Obama has led the economy back to a state of strong, or even solid, growth. Despite annual evidence to the contrary, the myth persists. If you climb Mount Olympus on… Continue Reading
The White House today downplayed news that the economy contracted 0.7 percent during the first quarter of the year, arguing “the most stable components of GDP” were growing quite nicely. The new number was a downward revision of the previous estimate that GDP had increased by a mere 0.2 percent. From White House Council of Economic Advisor Chairman Jason Furman: Today’s downward revision… Continue Reading
If anyone has any questions about the decrepitude of the Obama economy and the “recovery” that never seems to get to “fully recovered,” it was answered today as the Commerce Department announced that GDP had expanded by 0.2 percent during the first three months of the year – that is, growth basically stopped. This comes… Continue Reading
I remember a few weeks ago hearing White House press Secretary Josh Earnest mention the strong economy. Strong economy? The economy is actually quite weak. Still. Former Sen. Phil Gramm, R-Texas, an economist, takes a look at the Obama recovery and makes a simple argument: Bad Policy makes for bad economies. From the piece: How… Continue Reading
White House Press Secretary Josh Earnest Tuesday was unable to launch a serious counterargument to Hillary Clinton’s claim that small business creation in the United States has “stalled out” under President Obama. Notice how he tried to dodge the question and, when ABC news reporter Jonathan Karl wouldn’t let him get away, went to the… Continue Reading
Ahh, the Summer of Recovery. I remember it like it was yesterday. It was 2009, and we danced, we sang, and we toasted the stimulus, which was going to pull us off the sickbed and out of the doldrums. And then, the summer went by, and there was no recovery. For years, we waited. Occasionally,… Continue Reading