U.S. Economic News
December 3, 2018
U.S. Economic Indicators
The ISM Manufacturing Index increased 1.6 percentage points to 59.3 in November. The Employment Index edged up 1.6 percentage points to 58.4 while the New Orders Index rose 4.7 percentage points to 62.1. ISM Report
Construction spending inched downward 0.1% in October to an annualized rate of $1.31 trillion. Public construction rose 0.8% while private construction fell 0.4%. Census Report
U.S. News
The Wall Street Journal reports that China has agreed to cut tariffs on cars imported from the United States, signaling a willingness to make concessions in order to ease trade tensions. However, U.S. auto manufacturers still may protect themselves from future trade spats by building fewer autos in the U.S. for export. WSJ
Michael Derby of the Wall Street Journal reports that Minneapolis Fed President Neel Kashkari has cautioned against the Fed further raising interest rates, warning the U.S. economy could be pushed into a recession if borrowing costs continue to rise. Kashkari cites historically low unemployment in addition to muted inflation as reason for the Fed to take a “wait and see” approach to future interest rates hikes. WSJ