June 4, 2018

Robust Job Growth In The United States In May


  • The U.S. economic growth rate for the first quarter of 2018 was revised downward, from a previously-estimated 2.3 percent to 2.2 percent due to slower rates of private inventory and residential fixed investment.
  • The Canadian economy expanded at a 1.3 percent annualized growth rate in the first quarter of 2018, the country’s slowest pace of expansion in two years, due to lower rates of residential investment.
  • S. employers added 236,000 jobs to their payrolls in May while the nation’s unemployment rate fell from 3.9 percent in April to 3.8 percent in May. The jobless rate is now at its lowest level since April 2000. U.S. manufacturers added 18,000 jobs last month. In other jobs-related news, 221,000 individuals filed for federal unemployment benefits for the first time during the week that ended May 26, down from 234,000 the week before. The four-week moving average of first-time claims rose, however. The number of individuals who continued to receive benefits fell to 1.726 million for the week that ended May 19 from 1.741 million the week before. The four-week moving average of continuing claims also declined.
  • The IHS Markit purchasing managers’ index (PMI) for the United States fell slightly from April to May, declining from 56.5 to 56.4 despite a “sharp” increase in the rates of output and new orders. The Institute for Supply Management’s PMI rose, however, increasing from 55.9 in April to 57.3 in May.
  • The IHS Markit PMI for Canada increased from 55.5 in April to 56.2 in May due to “robust rises in output, new orders and employment.” May’s reading was the highest in more than seven years.
  • The Federal Reserve Bank of Dallas said manufacturing activity in Texas increased “markedly” in May. The bank’s production index rose ten points to a 12-year high of +35.2.
  • In other economic news: personal incomes in the United States increased 0.3 percent between March 2018 and April 2018; U.S. construction spending rose 1.8 percent between March 2018 and April 2018 and 7.6 percent between April 2017 and April 2018; and the Conference Board’ U.S. consumer confidence index increased from 125.6 in April to 128.0 in May.