Tuesday, 8 August 2017

Trump Economics anyone??? Part I

The good news for Trump is that many parts of the economy are still humming.
Trump is taking credit particularly for strong job growth and record high stock prices.
The housing market is another bright spot.
And the trade deficit has narrowed.

Here's a detailed look at the American economy, 200 days into the Trump presidency.

1. Jobs
It's hard to find fault with the latest jobs numbers.
The unemployment rate is 4.3%, a 16-year low.
The economy has added more than 1 million jobs since Trump took office.
On the other hand, wage growth has yet to really pick up.
Employers still don't feel pressure to offer big salaries to attract the workers they need.
Average hourly earnings have increased only 2.5% over the past 12 months.
The Federal Reserve would rather see 3% to 3.5%.
Still, because inflation is low, those wage gains are helping many Americans.

2. Housing prices
They're red hot.
The average price for an existing home in June was a record $263,800, or 6.5% higher than a year ago.
June was the 64th consecutive month of gains compared with a year earlier.
And borrowing money to buy a house remains relatively affordable, despite recent interest rate hikes by the Federal Reserve.
The average rate for a 30-year mortgage is just 3.93%, according to Freddie Mac, down from 4.02% three months ago.

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