US Down To 5% Unemployment

Manufacturing has been flat the last couple of months, but the overall economy seems to be doing well. We are now at 5% unemployment which is considered the threshold for full employment by the Fed and many private economists. This week’s employment report showed that overall employment is up with 271,000 new jobs added in October. This is the fastest increase in US jobs so far this year and sharply higher than the 183,000 that had been forecasted. Wages look like they are edging up, and the Fed may be looking to raise interest rates again soon. The ISM manufacturing index showed that US Manufacturing has slowed a bit during the last couple of months as a result from export orders to other parts of the world experiencing economic uncertainty and the strengthening US Dollar. The ISM also reported that new orders and production indexes were bright spots last month. Each were up nearly 2 points at 52.9 which is safely above breakeven 50. The stock market has rebounded back toward 18,000 which is a positive indicator for the start of next year.

Bruce Peacock
Vice President of Business Development
The Richmond Group USA