U.S. Economic News
July 15, 2019
U.S. Economic Indicators
The July Empire State Manufacturing Survey indicates that business activity rebounded modestly in July, as the headline index rose 12.9 points to 4.3, climbing out of negative territory. The new orders index rose 10.5 points to -1.5, while the shipments index fell 2.5 points to 7.2; meanwhile, the index for number of employees dropped 6.1 points to -9.6 and the hours worked index turned positive, indicating a slightly longer workweek. NY Fed Report
U.S. News
The Financial Times reports that China’s economy grew at its slowest pace in almost three decades as the trade war with the U.S. led to a sharp contraction in exports in the second quarter of 2019. Stronger than expected growth in consumer spending and a boost from tax cuts enacted earlier in the year partially offset some of the effects of reduced exports, supporting Beijing’s assertion that China’s domestic economy is robust enough to withstand a protracted trade conflict. FT
In an op-ed published in the Washington Post, Vice President Mike Pence urges Congress to pass the U.S.-Mexico-Canada Agreement, calling it a “win for all three countries” that would include stringent Mexican labor protections and add an estimated 176,000 new jobs to the U.S. economy. He also noted that the deal would close auto import loopholes by requiring at least 75% of a vehicle to be manufactured with parts made in North America for it to be sold duty-free. WaPo
According to the Wall Street Journal, the current U.S. labor market is far less tight than official unemployment figures suggest, indicating that traditional methods for measuring the health of the job market may be inadequate. Historically low headline unemployment amid muted wage growth and weak inflation may reflect a higher proportion of part-time workers or a rising share of younger Americans attending college instead of looking for work. WSJ