Launch VideoLackluster Jobs Report Raises Likelihood of Fed Action
It’s back to reality for the jobs situation; the economy added a lowly 96,000 nonfarm payroll jobs during August while the July report was revised lower to a monthly gain of 141,000 from a previously reported increase of 163,000. Investors should anticipate a similarly weak employment picture going forward as the economy is simply not advancing at a pace sufficient to engender desirable job gains.
U.S. GDP advanced by just 1.7 percent in the second quarter with many top tier indicators (ISM, new orders, regional Fed surveys) pointing to a deceleration in the second half of the year. Based on information gleaned from the Bloomberg Orange Book, businesses continue to indicate they are placing hiring and investment on the back burner due to uncertainty about the fiscal cliff, Europe’s seemingly never-ending economic crisis and a potential hard landing in China.
