Episode 10: As employment and inflation stabilize, what is the driving force behind economic growth?
- While the U.S. labor market added more jobs than expected in August, gains were still shy of recent norms, suggesting a slowdown in employment growth.
- The BLS reports the Labor Force Participation Rate has increased to 62.8%, the highest level in over three years.
- The driving force in economic growth is inflation, which remains a concern. According to the Bureau of Economic Analysis, the Personal Consumption Expenditures (PCE) index rose to 4.2% in July.
- The Real GDP grew at a favorable annual rate of 2.1% in 2nd quarter 2023.
For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.