About the Video
Weekly stock market analysis – Employment Data, Consumer Confidence Index, Purchasing Managers’ Index (PMI), and more.
🔴 𝗦𝘁𝗮𝗿𝘁 𝗜𝗻𝘃𝗲𝘀𝘁𝗶𝗻𝗴 𝘄𝗶𝘁𝗵 𝗜𝗕𝗞𝗥 ➡️ Click Here
⬇️Timestamps:
0:00 → Economic Updates
1:04 → Employment Data
3:43 → Consumer Confidence Index
6:02 → Purchasing Managers’ Index (PMI)
7:37 → Upcoming Important Dates
US employers added a healthy number of jobs in August and a steady stream of people entering the workforce lifted the unemployment rate, suggesting some easing in the tight labor market and offering mixed implications for the Federal Reserve. Nonfarm payrolls increased 315,000 last month, while the unemployment rate unexpectedly rose to a six-month high of 3.7%, the first increase since January, as the participation rate climbed. Despite moderating job growth, the still-solid employment gain points to a healthy appetite for labor amid high inflation, rising interest rates and an uncertain economic outlook. Such demand, along with repeated pay raises, continues to underpin consumer spending.
The spread between the yields on the 10-year and 2-year Treasury notes has been inverted for more than a month, and is now standing at -0.20%. An inverted yield curve has historically been a reliable indicator of a coming recession, coming most recently before downturns in 1990, 2001, and 2008. While brief inversions typically don’t predict a downturn, ones that last beyond a momentary flashing can have stronger predictive power.
US consumer confidence rose by more than forecast in August to the highest since May, suggesting that Americans are growing more optimistic about the economy amid falling gas prices. The Conference Board’s index increased to 103.2 from a downwardly revised 95.3 reading in July, the first increase in four months. Consumer confidence has taken a hit this year amid the highest inflation in a generation, which has led the Federal Reserve to pursue aggressive interest-rate hikes. Higher borrowing costs may force consumers to cut back discretionary purchases and big-ticket items in particular, which would contribute to a slowdown in economic activity.
The ISM Manufacturing PMI arrived at 52.8 in August, showing that the business activity continued to expand at the same pace as it did in July. Supply chain developments continue to trend in a positive direction. Supplier delivery times are no longer lengthening the way they were earlier in the year, and input price growth has slowed to its lowest pace since the summer of 2020, which should help to further cool inflationary pressures.
Follow Ziet
Disclaimer: The content on this channel is for educational purposes only and merely cites my own personal opinions. In order to make the best financial decision that suits your own needs, you must conduct your own research and seek the advice of a licensed financial advisor if necessary.
