22 Feb Signs, Good or Bad?
There are many signs in the economy that can be seen as good signs of the market in the near future. However, many of these signs actually reveal more imperative problems than already known if analyzed properly.
The U.S. economy created around 151,000 jobs in January alone, lowering the unemployment rate to 4.9%. Now usually this would be great news, nothing about these numbers seem bad at a first glance. It isn’t until you examine the projected numbers for unemployment of January this year that you realize that these numbers aren’t as positive as they seem. The estimated amount of jobs to be created during January of this year was actually supposed to be around 188,000. Also this number was offset by a 0.5% wage growth across the country. Both these two factors in play together wont do much to hold down the value of the dollar, which is going to be reflected in the U.S. export numbers. Chinas economy is slowing more than the government expected while capital is fleeing the country at an alarming rate. Also commodities are weakening in the global markets no doubt due to the crash of Chinas economy. This means that the U.S. commodity prices are also being affected by the crash in China.
The average American income rose by 0.3% in January but spending however was flat in comparison to the growth. Personal saving in America increased from 0.2% to 5.5%, the highest rates since 2012. These numbers speak very strongly for themselves; they seem to sum up the national mood right about now. Not only this, but factory orders fell 2.9% in January after dropping 0.7% in December. This looks and feels like recession in more ways than one. There isn’t much evidence supporting the economy somehow escaping the massive slowdown, which is just ahead. To make sure that youre ready for the times to come, call Ortiz World Wealth your trusted investment advisor representative today and make sure youre safe and not sorry.
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