The U.S. economy showed fresh signs of slowing in recent weeks as job growth turned negative, consumer spending weakened and housing activity softened.
- The U.S. economy lost jobs in July, according to the U.S. Bureau of Labor Statistics (BLS) Employment Situation Report, marking the first negative monthly payroll reading since February.
- The unemployment rate declined in July, but much of that improvement reflected workers leaving the labor force rather than stronger hiring.
- BLS revisions erased over 100,000 jobs from the prior two months, and average hourly earnings growth is now the slowest in five years, which is a direct hit to household formation.
- Retail sales fell in July, posting the sharpest monthly decline in more than a year and signaling more cautious consumer spending.
- According to the University of Michigan Surveys of Consumers, consumer sentiment retreated after rebounding earlier in the summer as households faced higher gasoline prices and persistent inflation pressures.
- Iflation continued to cool in July, with only modest monthly price increases, though inflation remained above the Federal Reserve's 2% target.
- Minutes from the Federal Reserve's Federal Open Market Committee July meeting revealed the most divided vote in years, with three policymakers favoring an immediate rate hike amid concerns that inflation could remain elevated.
- The U.S. Census Bureau and Department of Housing and Urban Development's New Residential Construction Report showed housing starts fell sharply in July, while multifamily permits increased, pointing to a stronger future apartment development pipeline despite weaker current construction activity.
For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.
