Cautious Optimism Over Lower Unemployment Numbers

“The economy is on track to grow more than 2% in the second quarter, powered by rising home sales and steady consumer spending on an array of other goods and services.” Overall US unemployment is down to 4.7% which is the lowest rate since 2007, but overall job creation numbers for last month was very weak. The employment gauge for US manufacturers reported in the ISM manufacturing index was unchanged for May at 49.2%. “American manufacturers have slightly reduced employment over the past year to cope with slack demand at home and declining exports abroad. The U.S. energy industry has cut back on purchases of oil rigs and other expensive gear while a strong dollar and weak global economy have hurt sales to foreign customers.” Many businesses are looking forward to seasonal surges threw the middle portion of the year. This may offset any election year uncertainties as we get closer to November.


Bruce Peacock
Vice President of Business Development
The Richmond Group USA