It’s weird! The AP gave us “happy face” economic reports after “happy face” economic reports. Many of us, including yours truly, stated that the news the lunatics were putting a happy face on wasn’t good news at all, but, offered foreboding, instead.
As it turns out, the pass 3 months of glowing jobs reports and prognostications were simply fantasy.
WASHINGTON (AP) — A sagging global economy has finally caught up with the United States.
Nervous employers pulled back on hiring in August and September as China’s economy slowed, global markets sank and foreigners bought fewer U.S. goods. Friday’s monthly jobs report from the government suggested that the U.S. economy, which has been outshining others around the world, may be weakening. …..
… Employers added just 142,000 jobs in September, and the government sharply lowered its estimate of gains in July and August by a combined 59,000. Monthly job growth averaged a mediocre 167,000 in the July-September quarter, down from 231,000 in the April-June period.
The unemployment rate remained a low 5.1 percent, but only because many Americans have stopped looking for work and are no longer counted as unemployed. The proportion of adults who either have a job or are looking for one is at a 38-year low. ……
Weird how the AP suddenly decided to parrot the same thing we’ve been saying for the last several years.
…. The disparity between overseas weakness and solid consumer spending was evident in the September jobs report: Manufacturers shed jobs for a second straight month while retailers, restaurants and hotels all added positions. …….
That’s great! We’re selling crap, we’re just not making the stuff we’re selling …. in other words, we’re exporting wealth. BTW, this would add to the “GDP” number, which the AP would interpret as proof our economy is improving, while in reality, all it is, is proof of increasing outflows of wealth from the US. As demonstrate by the last several months, you can have an increasing GDP and a tanking economy.
Oh, yeh, and then, there’s this ……
WASHINGTON (AP) — Orders to U.S. factories fell in August by the largest amount in eight months, led by a drop in demand for commercial airplanes and weakness in a key category that tracks business investment spending.
Factory orders declined 1.7 percent in August after a slight gain of 0.2 percent in July, the Commerce Department reported Friday. It was the biggest setback since orders dropped 3.7 percent in December.
Demand in a key category that serves as a proxy for business investment slipped 0.8 percent in August, following solid gains in June and July.
Manufacturing has been under stress this year as a strong dollar has hurt export sales. The big fall in energy prices has also led to cutbacks by energy companies.
Orders for durable goods, items expected to last at least three years, fell 2.3 percent in August, slightly worse than the 2 percent decline reported in a preliminary report. Demand for nondurable goods such as paper, chemicals and food dropped 1.1 percent.
The overall weakness was fueled by a 5.9 percent fall in demand for commercial aircraft, a volatile category that was down for the second month. Orders for machinery rose 0.8 percent, but orders for computers and other electronic products were off 0.5 percent.
On Thursday, the Institute for Supply Management said that its manufacturing index slid to a reading of 50.2 in September, its lowest level since May 2013.
The rising dollar makes U.S. goods more expensive in foreign markets, while weakness in China, the world’s second biggest economy, is adding pressure to the global economy.
The overall economy, as measured by the gross domestic product, grew at an annual rate of 3.9 percent in the April-June quarter, a sharp increase after an anemic 0.6 percent rise in the first quarter. Economists are forecasting that growth in the current July-September quarter will slow slightly to around 2.5 percent.
The “overall economy” did not grow, because the GDP is incapable of measuring the overall health of an economy. As just demonstrated.