U.S. Economic News
June 5, 2019
U.S. Economic Indicators
The ADP Employment Report shows that private-sector employment increased by 27,000 jobs in May, significantly below expectations of 175,000. The services sector added 71,000 jobs, while the goods-producing sector lost 43,000 jobs. ADP Report
The ISM Non-Manufacturing Index rose 1.4 points to 56.9 in May. The New Orders Index rose 0.5 point to 58.6, while the Employment Index rose 4.4 points to 58.1. ISM Report
U.S. News
According to the Financial Times, the U.S. Commerce Department has warned that any halt to China’s rare earth exports would cause “significant shocks” to U.S. supply chains. The Commerce Department recommended streamlining the permitting process for domestic mining to reduce U.S. dependence on foreign suppliers of critical minerals. FT
Greg Ip of the Wall Street Journal reports that a major trade war between the U.S. and China is comparable to the 1973 Arab oil embargo, but would have milder consequences given currently low inflation. He noted that although many companies are starting to shift supply chains away from China to minimize potential disruptions, the process will take years to complete and will harm U.S. productivity. WSJ