Without a doubt, this is the strongest economy we’ve seen in quite some time.
Over the past week, the U.S. GDP came in better than expected at 3.5%. Then, the Bureau of Labor Statistics reported another 250,000 jobs in October 2018. That was much better than projections for just 190,000.
"The job market is doing remarkably well, particularly this late in the expansion," said Jim Baird, partner and chief investment officer for Plante Moran Financial Advisors, as quoted by CNBC. "This report adds yet another data point to a narrative that has been positive for the labor market this year. Little seems to stand in the way of the economy finishing 2018 out on solid footing."
In addition, the number of employed Americans has never been higher at 156,562,000.
Granted, unemployment held at 3.7%, but this is the lowest rate since 1969.
“We are averaging 212,000 jobs per month in 2018 to date – one of the strongest years for job growth in recent history – and in combination with the low unemployment rate, this will continue to push wage growth higher,” noted the Mortgage Bankers Association, as quoted by Housing Wire.
In short, the job market is growing at a blistering pace.
Manufacturing jobs increased by 32,000 in October 2018, and have gained a total of 434,000 jobs since President Trump took office.
In October, professional and business services added 35,000 jobs. Healthcare employment rose another 36,000. Transportation and warehousing jobs were up 24,000. Construction jobs grew 33,000. Mining jobs added 5,000.
Paychecks Rise to Nine Year High
The bigger story may be wage growth, which has been the missing piece of the economic recovery for too long. For example, average hourly earnings just increased by 5 cents an hour to $27.30, and 83 cents year over year.
That annual increase in wages was the best since 2009.
“Wage growth, the key number for investors worried about Fed rate hikes, accelerated more than expected to 3.1%, the fastest since early 2009,” says Investors Business Daily. “The momentum for wage growth virtually locks in another Fed rate hike in December.”
While others may fear a slowdown and recession, we see no clear signs of that happening.
Instead, we think the U.S. economy is likely to continue its strong growth due to the tax cuts and relaxation of overly stringent regulations. Stay tuned to The Cheap Investor for more on how to trade continued growth.