The long overdue Jobs Report from the Bureau of Labor Statistics was released this morning showing the Unemployment Rate increased from 4.4% up to 4.6%. I expected to see it at 4.5% but was not surprised at the 4.6 number given the lackluster growth in job creation over the last six months. The average hourly earnings came in at $36.86, which is up 3.6% year-over-year, but lower than the previous report at 3.8%. However, the weekly earnings rose 0.4% and that figure now stands at 3.5% compared to the previous 3.1%. So a little bit of a mixed bag on wage-based inflation, but the calculations are more aligned than they previously have been now in the mid threes.
Retail Sales calculations were also published this morning, showing as 0.0% year over a year flat line. The previous month was an increase of 0.1%. So Americans are collectively spending the same amount of money this year as last year on goods and services. Consumerism is 60% of the US economy so that will go a long way to keep inflation in check.
The 10 year treasury still sits at 4.15% and mortgage bonds aren’t having near the reaction hoped for after the U3 (unemployment rate) ticked up two notches this morning. But at least interest rates aren’t getting worse!
