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Economy USA

Its not what u want to hear but its the 411 -- Thursday's economy report: mostly bad tidings:

By from net, Posted in Economy USA

WASHINGTON - A reuters report on Thursday claims U.S.-based employers last month announced the fewest job cuts in eight months. But a moderation in services sector activity to an 11-month low in July put a new wrinkle in the economic outlook.

The services sector accounts for more than two-thirds of the U.S. economy and analysts worry. "The services economy is cooling" said Chris Rupkey, chief economist at MUFG in New York.

The FedRes U.S. central bank is expected to delay raising interest rates until December. The Fed has raised rates twice this year.

The claims data has no bearing on July's employment report, which is scheduled to be released on Friday, as it falls outside the survey period.

According to a Reuters survey of economists, nonfarm payrolls probably increased by 183,000 jobs last month. Which is about 175,00 below what it would have needed to be to signal any kind of economic recovery in play.

The U.S. dollar <.DXY> initially firmed against a basket of currencies on the claims data but gave up gains after the services sector survey. Prices for U.S. Treasuries rose, buoyed in part by the Bank of England's decision to keep interest rates at a record low and downgrade its economic and inflation forecasts.

U.S. stocks were mixed, with the S&P 500 <.SPX) and the Nasdaq <.IXIC> falling, but the Dow <.DJI> setting a new record high.


In a separate report on Thursday, global outplacement consultancy Challenger, Gray & Christmas said U.S.-based employers announced 28,307 job cuts last month, down 9 percent from June and the fewest number since November 2016.

Retailers planned to cut 3,862 jobs in July. They were closely followed by the healthcare products and services sector where employers planned 3,634 layoffs.

"Retailers are cutting the most jobs this year" said John Challenger, chief executive officer of Challenger, Gray & Christmas.



Listening to the Peter Schiff clip from 2006 is valuable, because it explains the super tightness of the economy RIGHT NOW. People know they have too much credit card debt, their wages are not going up (if they are employed at all) and they have no savings. So, they are cutting way back on spending and trying to put some money in savings. RESULT? Stagnant economy with no money moving around.

A third report from the Institute for Supply Management (ISM) showed its non-manufacturing index fell to a reading of 53.9 last month, the lowest since August 2016, from 57.4 in June.

"The ISM report is clearly a big disappointment and suggests that the economy may have lost momentum going into the third quarter," said Andrew Hunter, an economist at Capital Economics.

Last month, a gauge of new orders received by services industries fell to 55.1 from 60.5 in June. A measure of services sector employment dropped 2.2 points to 53.6.

ECONOMY Headlines - Thursday -- starting wtih new job creation...

By from net, Posted in Economy USA






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