U.S. Economic News
March 4, 2020
U.S. Economic Indicators
The ADP Employment Report shows that private-sector employment increased by 183,000 jobs in February, above expectations. The services sector added 172,000 jobs, while the goods-producing sector added 11,000 jobs. ADP Report
The ISM Non-Manufacturing Index rose 1.8 points to 57.3 in February. The New Orders Index rose 6.9 points to 63.1, while the Employment Index rose 2.5 points to 55.6. ISM Report
U.S. News
The Financial Times reports that the Federal Reserve’s half a percentage point rate cut and subsequent fall in long-term bond yields is expected to cause a record wave of refinancing, a major boon for U.S. homeowners. Households could save billions of dollars as already-low mortgage rates fall even lower, but the banking industry is unlikely to benefit from a surge in refinancing demand as falling rates put downward pressure on mortgage yields. FT
According to the Wall Street Journal, the sharp slowdown in Chinese economic activity due to the coronavirus epidemic is forcing struggling businesses to slash salaries and lay off workers, reducing household incomes and dimming prospects for a rapid recovery. Small and medium-sized companies are especially struggling to maintain operations as they lack the resources of larger, state-owned enterprises. WSJ