Cheney: July Employment Report Shows Economy Strong But Moderating.Business Editors BOSTON--(BUSINESS WIRE)--Aug. 4, 2000 By Bill Cheney Chief Economist John Hancock Financial Services, Inc. (NYSE NYSE See: New York Stock Exchange : JHF JHF John Henry Foster Co. (St. Louis, MO) JHF Jewish Healthcare Foundation JHF Juvenile Hyaline Fibromatosis ) "July's employment report paints a picture of a vibrant but moderating economy. Job growth was below expectations at 138,000; wage growth was moderate, but slightly higher than expected at 0.4 percent; and the unemployment rate was steady at 4 percent. Wage growth stands out, but it was only a tad higher than expected and, in any event, is still being outpaced by productivity growth. Following on the heels of the slowdown in homebuilding and auto sales Auto Sales The major producers of domestic automobiles report sales monthly. These numbers are seasonally adjusted by the U.S. Department of Commerce and are available to the public one to five business days after the end of each month. , the slower and sustainable pace of job creation has to be regarded as good news. The jobs report suggests that the Goldilocks economy Goldilocks Economy A term referring to the U.S. economy of the mid- to late-1990s. It was "not too hot, not too cold, but just right." Notes: Everything in the goldilocks economy is fine until the three bears (or bear market) come home for their porridge! may be making a return engagement. It is the first broad indicator of the economy's performance in July. We are not without risks, of course, but the economy continues to demonstrate incredible resiliency and flexibility. Greenspan and the Fed have deftly managed the economy and this report gives them no reason to do anything they hadn't already planned. The economy is functioning perfectly well with a 4 percent unemployment rate. Short of an inferno in the CPI and PPI (1) (Pixels Per Inch) The measurement of the resolution of a monitor or scanner. For example, a monitor that is 16 inches wide and displays 1600 pixels across its width would have a resolution of 100 ppi (1600 divided by 16). , I don't see them moving until later in the fall." (Bill Cheney can be reached for additional comment at 617-572-9138 or at bcheney@jhancock.com) |
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