All Posts Tagged: manufacturing

U.S. Outlook: A warning from the jobs report

Scott Anderson
Chief Economist

The May U.S. jobs report gave us a taste of what’s ahead if trade war threats continue to escalate and tariffs continue to grow. Hiring faded across the board in May with just 75,000 net new jobs created in the U.S. last month. The U.S. economy also created 75,000 fewer jobs in March and April than previously reported.

This is not just a one-off hiccup in the data, but part of a broader more prolonged pattern of labor market softening.

For more on this, see highlights of my report below, followed by a link to the full U.S. Outlook, delivered on June 7.

Key observations:
  • Disappointing U.S. jobs data suggest consumer spending slowdown in the months ahead.
  • We are now expecting the Federal Reserve to cut interest rates in Sept after disappointing jobs growth in May.
  • The Fed funds futures market is currently pricing in a high probability (77%) of a rate cut at the July FOMC meeting but this bet appears pretty aggressive given what we know today.
  • At this point, policymakers should tread carefully. De-escalating the trade war with Mexico and a Fed rate cut are going to be needed to keep the U.S. expansion going.

Read my full report.

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U.S. Outlook: Dark clouds loom over the global economy

Scott Anderson
Chief Economist
dark-clouds-manufacturing-outlook

Bad news about the global economy seems to be piling up. Last week the OECD cut its 2019 global growth estimate to only 3.2% from 3.3% forecast just two months ago.

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U.S. Outlook: Mixed signals and caution

Scott Anderson
Chief Economist

What are the near-term prospects for the U.S. economy? Is the glass half-full or half-empty? It’s a tough call.
Right now both answers probably are correct.

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U.S. Outlook: Job growth bounces back in March

Scott Anderson
Chief Economist

Job growth may have bounced back in March, but our chief economist cautions against an exuberant celebration of the positive numbers. Find out why in his U.S. Outlook

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Investment Insights: April fools rush in

Wade Balliet
Posted by Wade Balliet
Investment Strategy

Our team has continued to enjoy beneficial positioning in the current investment environment, though we continue to be wary of how long such notable gains can last. Financial market fundamentals remain fairly positive in our view, but those may be overshadowed in the future by potential negative factors, particularly from geopolitics.

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