Despite ongoing trade war fears, the U.S. economy is growing at a healthy rate.
Over the last few weeks, U.S. GDP increased at a 3.5% annualized rate, according to the U.S. Commerce Department in its second estimate of third quarter GDP growth. Then, even though job growth fell short of expectations for 198,000 jobs in November 2018, the economy still added another 155,000 jobs.
"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, according to the U.S. Labor Department, the unemployment rate held at 3.7% -- its lowest rate since 1969.
Better yet, the number of employed Americans has never been higher at 156,795,000.
In short, the job market is still growing at a respectable pace.
Manufacturing jobs increased by another 27,000 in November after jumping 32,000 in October 2018, and have gained 285,000 over the last year alone.
"Game-changing tax and regulatory reform has led to manufacturers hiring more workers and raising wages and benefits," said Chad Moutray, chief economist for the National Association of Manufacturers, as quoted by the Washington Examiner.
Transportation added another 25,000 jobs – a three year high.
Wholesale jobs added 10,0000 jobs. Retail added 18,000. Leisure and Hospitality gained another 5,000 jobs. Construction added 5,000 jobs.
Paychecks Rise to Nine Year High
One of the best numbers in the report was wage growth.
In November, average hourly earnings for all employees on private nonfarm payrolls jumped by six cents to $27.35. Average hourly earnings have increased by 81 cents, or 3.1% year over year.
“President Trump’s policies continue to fuel strong and steady job growth,” Labor Secretary Alexander Acosta said, as quoted by Politico. “Wage gains remain steady. Paychecks are growing.”
While others may fear a slowdown and recession, we see no clear signs of that happening. Instead, the U.S. economy is likely to continue its strong growth trend.
Stay tuned to The Cheap Investor for more on how to invest in continued growth.