U.S. Economic News
August 30, 2017
U.S. Economic Indicators
The ADP Employment Report shows that private-sector employment increased by 237,000 jobs in August, well above expectations of 185,000. The services sector added 204,000 jobs and the goods-producing sector added 33,000 jobs. ADP Report
The second estimate of Q2 GDP indicates that the U.S. economy expanded at an annualized rate of 3.0%, above the initial estimate of 2.6%. The reading mainly reflects upward revisions of personal consumption expenditures and nonresidential fixed investment. BEA
U.S. News
According to the Wall Street Journal, hotel developers are slowing down new construction as some markets are becoming overbuilt. Many developers rushed to build as the economy recovered from the deep recession, though declining revenues and escalating labor and materials costs have slowed growth in recent months. WSJ
Vipal Monga of the Wall Street Journal writes that Republican plans to scale back tax deductions on corporate interest could harm the U.S. bond market. If the Republican tax plan eliminates net interest payment deductions from taxable income, companies may shift borrowing to foreign countries where the tax deductions still exist, thereby weakening U.S. capital markets. WSJ
The Financial Times reports that Moody’s has upgraded its growth forecasts for the European Union while slashing its forecast for U.S. growth. Moody’s says that the U.S. economy has been weaker than expected and points to subdued infrastructure investment in 2017 as a factor hindering economic growth. FT