The U.S. economy is still chugging along at a healthy pace.
After adding a revised 244,000 jobs in October 2017, the U.S. reported 228,000 jobs for November 2017 leaving the unemployment rate at 4.1%.
That’s the lowest rate we’ve seen since December 2000.
Most impressive, manufacturing added another 31,000 jobs in November.
That means more than 159,000 manufacturing jobs have been added since President Trump took office. “Economists at UBS noted that most of the overall gains in manufacturing employment came in the fabricated metals and machinery industries, which are benefitting from an energy-led boost in overall capital investment from businesses,” explains Yahoo Finance.
In addition, healthcare added 29,500 workers. Construction added 24,000 jobs. Even a battered sector like retail added 18,700 jobs, which is higher than normal for seasonal hires.
More good news, average weekly earnings increased 3.1% over the last 12 months. Average hourly earnings were also up 2.5%. Granted, that’s still a small number considering how low the unemployment rate currently is, but it’s certainly a step in the right direction.
Going forward, there’s hope for further upside.
In fact, according to The Washington Post:
“President Trump and Republicans on Capitol Hill have said they hope to pass sweeping changes to the tax code by the end of December, a move they believe will create more well-paying jobs and supercharge economic growth. Lowering the corporate tax rate, they assert, will inspire firms to invest more on American soil.”
And, “unless employment slows dramatically, the unemployment rate will go to 3.5%" in 2019. That would be a 50-year low for the jobless rate,” predicts Morningstar.
The economy continues to chug along at a solid clip with the Federal Reserve looking to hike rates again at its December 2017 meeting. In fact, right now, according to the CME Group, odds for a 125 to 150 basis point hike are up to 90.2%.
Odds of a 125 to 150 basis point hike are as high as 88.3% for January 2018, as well.
It’ll be interesting to see what happens next.
Whatever that is, The Cheap Investor will keep you informed. Stay tuned.