The data revealed by the Bureau of Labor Statistics had some healthy numbers to bring a few smiles in the Federal reserve, that is arguably scratching its head now after the hike in tariffs. The hiring in the United States continued as the increment in wages too showed an upward trend. Non-farm payrolls managed to stay in proximity of Wall Street median forecast as a total of 164,000 non-farm jobs were generated during the month of July.
As per the BLS report, financial activities sector, health care, professional and technical services, and social assistance were the sectors that generated the most number jobs this month. Manufacturing employment, which is by far the sector most threatened to suffer from the recent increment in tariffs and the escalation in trade was between US and China, managed to generate around 16,000 jobs, somewhat similar to the number before the hike. The unemployment rate was at nearly a 50 year low as it continued to remain at 3.7 per cent. Workers had one more reason to smile though as there was an increase in the wages by 0.3 per cent month on month in July. The expected rate stood at just 0.2 per cent which makes the increase look even more popular.
Talking of the US economy, S&P 500 and NASDAQ both recorded their worst week of 2019 as they ended up at low 0.7 per cent and 1.3 per cent respectively. The Dow too suffered as it finished at low 0.4 per cent. The key factor that brought about this downfall is Donald Trump’s announcement of further addition of tariffs on imports from China and now even from a few European countries. Rate cut from the fed will also play role in stabilizing the market, but that is to come into effect only from September.
Loretta has studied masters in atmospheric science and is associated with us from the last 3 Years. She enjoys reading about cloud microphysics in leisure time. She is active on social platforms and has her individual page where she connects with people and shares her scientific notions on some significant topics. Loretta is a health conscious person and spends her free time in the gym by doing functional training work out, as she believes in staying fit and energetic.